by Scott Wapner
45. Drew Sandholm, “Howard Schultz Slams Ackman Over JC Penney Fight,” CNBC.com, August 9, 2013.
46. William Ackman, “Harbor Investment Conference,” February 13, 2015.
47. Pershing Square Capital Management Letter to Investors, June 12, 2012.
Chapter 4: Selling a Dream
1. Certificate of Death, Mark R. Hughes, State of California, May 21, 2000.
2. Ibid.
3. Ibid.
4. Mark Hughes Death Case Report, City of Los Angeles, Department of the Coroner, May 22, 2000.
5. Robert Welkos, “A Boy and His $400 Million,” Los Angeles Times, September 13, 2005.
6. Matthew Heller, “Death and Denial at Herbalife,” Los Angeles Times, February 18, 2001.
7. Ibid.
8. Ibid.
9. Ibid.
10. Ibid.
11. Heller, “Death and Denial at Herbalife.”
12. Ibid.
13. Ibid.
14. Ibid.
15. Ibid.
16. Donnie Cannon, “The Biography of Mark Seyforth,” Ezine Articles, September 30, 2010.
17. Ibid.
18. FTC Complaint, “In the Matter of Amway Corporation,” March 25, 1975.
19. Heller, “Death and Denial at Herbalife.”
20. Ibid.
21. Ibid.
22. Ibid.
23. Ibid.
24. Gieson Tandingan, “Mark Hughes Story,” YouTube video, www.youtube.com/watch?v=YWdSenMF12s.
25. Mark Hughes Herbalife History Videos, YouTube, www.youtube.com/watch?v=rqr1i2FGYuU.
26. Eric V. Copage, “Mark R. Hughes, 44, Founded Nutrition Supplement Concern,” New York Times, May 23, 2000.
27. “Mark Hughes Day 2010,” Today magazine, Herbalife 30th Anniversary issue, US edition no. 146.
28. Heller, “Death and Denial at Herbalife.”
29. Ibid.
30. Douglas P. Shutt, “Mark Hughes, Founder of Herbalife, Dies at 44,” Los Angeles Times, May 22, 2000.
31. Robert L. Jackson, “Testifies at Stormy Senate Hearing: Herbalife President Calls Diet Powders, Pills Safe,” Los Angeles Times, May 16, 1985.
32. Jube Shiver Jr., “Herbalife Settles Suit Filed by State on Medical Claims,” Los Angeles Times, October 16, 1985.
33. Tina Fisher Forde, “Herbalife Owner Autopsy Inconclusive,” Malibu Times, May 25, 2000.
34. Ibid.
35. Shutt, “Mark Hughes, Founder.”
36. Heller, “Death and Denial at Herbalife.”
37. Roger Parloff, “The Siege of Herbalife,” Fortune, September 9, 2015.
38. Duane Stanford, “Herbalife: Pyramid Scheme or Juggernaut? CEO Michael Johnson Fights Back,” Bloomberg, May 23, 2013.
39. Ibid.
40. Ibid.
41. Herbalife Press Release, PR Newswire, April 2, 2003.
42. Ibid.
43. Associated Press, “Founder of Herbalife Weight-Loss Empire Dead at 44?,” May 23, 2000.
44. Parloff, “The Seige of Herbalife.”
45. Ibid.
46. “Herbalife Ltd. Prices IPO at $14 Per Share,” Business Wire, December 15, 2004, www.businesswire.com/news/home/20041215005958/en/Herbalife-Ltd.-Prices-IPO-14-Share.
47. Matthew Townsend, “Has Soccer Made Herbalife Unbeatable?” Bloomberg Businessweek, April 21, 2016.
48. Official Transcript from Herbalife 2008 Investor Day.
49. Ibid.
50. Dominic Rushe, “Michael Johnson of Herbalife: America’s Highest Paid CEO in 2011,” The Guardian, May 2, 2012.
51. Ibid.
Chapter 5: The Phone Call
1. Leadville Race Series website, www.leadvilleraceseries.com.
2. Herbalife International of America, Inc. Official Earnings Call Transcript, May 1, 2012.
3. Ibid.
4. Ibid.
5. Herbalife International of America, Earnings Conference Call, May 1, 2012.
6. Roger Parloff, “The Siege of Herbalife,” Fortune, September 9, 2015.
7. Michael J. De La Merced, “Einhorn Questions Prompt Selloff at Herbalife,” New York Times DealBook, May 1, 2012.
8. CNBC, May 1, 2012.
9. Ibid.
10. De La Merced, “Einhorn Questions.”
11. John Vincent, “Tracking David Einhorn’s Greenlight Capital,” Seeking Alpha, November 9, 2011.
12. Ibid.
13. Ibid.
14. Helen Coster, “Einhorn Throws the Book at Allied,” Forbes, May 16, 2008.
15. Nick Summers, “When David Einhorn Talks, Markets Listen—Usually,” Bloomberg, March 21, 2013.
16. Gretchen Morgenson, “Following Clues the S.E.C. Didn’t,” New York Times, January 31, 2009.
17. Summers, “When David Einhorn Talks.”
18. Morgenson, “Following Clues the S.E.C. Didn’t.”
19. YouTube Video of Herbalife President’s Team Summit, March 24, 2012, www.youtube.com/watch?v=NuBbGSK-bGo.
20. Julia LaRoche, Linette Lopez, and Lisa Du, “The World’s Top Hedge Funders Presented Their Top Picks Yesterday,” Business Insider, May 16, 2012.
Chapter 6: The Big Short
1. Katherine Burton, “Defeat at JC Penney Hurts Ackman as Performance Trails,” Bloomberg, August 14, 2013.
2. Letter to Investors, Pershing Square Capital Management, November 22, 2011.
3. Joseph Checker, “Bill Ackman Likely Takes $200 Million Bath on Borders,” Wall Street Journal, May 19, 2011.
4. Ibid.
5. Ibid.
6. Letter to Investors, Pershing Square Capital Management, November 22, 2011.
7. Shira Ovide, “Bill Ackman Buys 12.2% Stake in Canadian Pacific Railway,” Wall Street Journal, October 28, 2011.
8. Michael De La Merced, “Ackman Buys into Penney and Fortune,” New York Times DealBook, October 8, 2010.
9. Investor Letter, Pershing Square Capital Management, November 22, 2011.
10. Brad Tuttle, “Why JC Penney’s No More Coupons Experiment Is Failing,” Time, May 17, 2012.
11. JC Penney Quarterly Earnings Report Conference Call Transcript, May 15, 2012.
12. Agustino Fontevecchia, “At Ira Sohn, Bill Ackman Defends JC Penney, Pins Hope on New CEO Ron Johnson,” Forbes, May 16, 2012.
13. CNBC, Street Signs, December 19, 2012.
14. Ibid.
15. CNBC, Street Signs, December 20, 2012.
16. Ibid.
17. Ira Sohn Conference Special Event Video, December 20, 2012.
18. Pershing Square presentation on Herbalife, AXA Equitable Center, December 20, 2012.
19. Doran Andry “Testimonial,” from Pershing Square presentation on Herbalife, December 20, 2012.
20. Svea Herbst-Bayliss and Sam Forgione, “Pershing Square’s Ackman Escalates Fight with Herbalife,” Reuters, December 20, 2012.
21. Stuart Pfeifer and Walter Hamilton, “Hedge Fund Manager Alleges Herbalife Is a Pyramid Scheme,” Los Angeles Times, December 20, 2012.
22. Michelle Celarier, “Flare-Up in War of Words Between Ackman, Herbalife,” New York Post, December 21, 2012.
23. John Hempton, “Bill Ackman Enters the City of Stalingrad,” Bronte Capital, December 28, 2012.
24. Ibid.
25. Ibid.
26. CNBC, Street Signs, January 4, 2013.
27. Robert Chapman, “Why I Made It a 35% Position After the Bill Ackman Bear Raid,” Chapman Capital LLC, Takeovers & Turnarounds, December 29, 2012, https://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2013/01/02/HLF%20by%20Chapman%20Capital%2012-29-2012.pdf.
Chapter 7: The Poison Pen
1. Charles Gasparino, Twitter timeline, January 8, 2013.
2. Andrew Ross Sorkin and Michael De La Merced, “Loeb Explains His Herbalife Bet,” New York Times DealBook, January 9, 2013.
3. CNBC, Squawk on the Street, January 9, 2013.
4. Ross Sorkin and De La Merced, “Loeb Explains His Herbalife Bet.”
5. Ibid.
> 6. Juliet Chung, “Showdown Over Herbalife Spotlights New Wall Street,” Wall Street Journal, January 10, 2013.
7. Agustino Fontevecchia, “Dan Loeb on Trumping Bill Ackman in Herbalife: It Wasn’t Personal, There Was No Pump and Dump,” Forbes, November 12, 2013.
8. Svea Herbst-Bayliss and Matthew Goldstein, “Hedge Fund Chief Einhorn Disappoints, Loeb Had Big 2012,” Reuters, January 4, 2013.
9. Jaime Lalinde, “Dan Loeb’s Top 10 Most Scathing Letters,” Vanity Fair, October 31, 2013.
10. Ibid.
11. Ibid.
12. DealBook, “Hedge Fund Takes Big Yahoo Stake, Calls for Board Shake-Up,” New York Times, September 8, 2011.
13. DealBook, “Loeb Calls for Yang to Quit Yahoo Board,” New York Times, November 4, 2011.
14. Amir Efrati, Joann S. Lublin, and Stu Woo, “Yahoo Finds New CEO at PayPal,” Wall Street Journal, January 5, 2012.
15. Michael De La Merced, “Loeb to Yahoo’s Chief: I’m Not a Short-Term Shareholder,” New York Times, March 28, 2012.
16. Michael De La Merced, “Third Point Demands Yahoo C.E.O. Be Fired by Monday,” New York Times, May 4, 2012.
17. Ibid.
18. Amir Efrati and Joann S. Lublin, “Thompson Resigns as CEO of Yahoo,” Wall Street Journal, May 13, 2012.
19. Amir Efrati and John Letzing, “Google’s Mayer Takes Over as Yahoo Chief,” Wall Street Journal, July 17, 2012.
20. Ibid.
21. Tabinda Hussain, “Third Point Up 21.2% 2012, AUM Reaches Another Record: $10.1B,” Valuewalk, January 3, 2013.
22. Ben Protess and Michael J. De La Merced, “S.E.C. Opens Investigation into Herbalife,” New York Times, January 9, 2013.
23. Steven Russolillo, “Live Blogging Herbalife’s Investor Meeting,” Wall Street Journal, January 10, 2013.
24. Ibid.
25. Ibid.
26. Ibid.
27. Ibid.
28. Ibid.
29. Ibid.
30. Ibid.
Chapter 8: The Brawl
1. Juliet Chung, “Icahn Takes Herbalife Stake,” Wall Street Journal, January 16, 2013.
2. Allie Wickman, “Carl Icahn on Bloomberg TV: I Don’t Like or Respect Bill Ackman,” Benzinga, January 24, 2013.
3. Ibid.
4. Ibid.
5. CNBC, Halftime Report, January 25, 2013.
Chapter 9: The Icon
1. William Alden, “Icahn Reveals His Stake in Herbalife,” New York Times, February 14, 2013.
2. Ibid.
3. Ibid.
4. Securities and Exchange Commission Schedule 13D CUSIP #G4412G101.
5. CNBC, Halftime Report, February 15, 2013.
6. Ken Auletta, “The Raid,” New Yorker, March 20, 2006.
7. Colin Dodds, “Carl Icahn: Success Story,” Investopedia.
8. Robert Slater, The Titans of Takeover (Philadelphia: Beard Books, 1999).
9. James Sterngold, “The Pawns Differ: Icahn Still Winning,” New York Times, February 6, 1985.
10. Tobias Carlisle, “How Carl Icahn Became a Corporate Raider,” Investment News, December 7, 2014.
11. Tobias Carlisle, “The Insight That Enabled Carl Icahn to Become a Corporate Raider,” Crain’s Wealth, December 8, 2014.
12. Carlisle, “How Carl Icahn Became a Corporate Raider.”
13. Paul Richter, “Carl Icahn Relishes His Raider Role,” Los Angeles Times, June 9, 1985.
14. Slater, The Titans of Takeover.
15. Ibid.
16. Ibid.
17. Ibid.
18. Ibid.
19. Carlisle, “How Carl Icahn Became a Corporate Raider.”
20. Robert Cole, “Icahn Makes Dual Offer for Dan River,” New York Times, October 26, 1982.
21. Slater, The Titans of Takeover.
22. Richter, “Carl Icahn Relishes His Raider Role.”
23. Robert Cole, “ACF, Icahn Target, Prepares Next Step,” New York Times, September 20, 1983.
24. Ibid.
25. Linette Lopez, “Carl Icahn Told an Amazing 8-Minute Story That Explains His Entire Philosphy About Activist Investing,” Business Insider, November 4, 2015.
26. Times Wire Services, “Chesebrough Will Buy Stauffer for $1.2 Billion,” Los Angeles Times, February 20, 1985.
27. Robert J. Cole, “Icahn Bids $8.1 Billion for Phillips,” New York Times, February 6, 1985.
28. Ibid.
29. William Gruber, “Raider Carl Icahn—A Pirate or Patriot?” Chicago Tribune, May 12, 1985.
30. Fred R. Bleakley, “T.W.A.’s Brief, Futile Battle,” New York Times, June 24, 1985.
31. Ibid.
32. John Crudele, “T.W.A. to Be Sold to Texas Air Corp for $793.5 Million,” New York Times, June 14, 1985.
33. Agis Salpukas, “Icahn on T.W.A. Woe: ‘We’re at Crossroads,’” New York Times, February 10, 1990.
34. Winston Williams, “Carl Icahn’s Wild Ride at TWA,” New York Times, June 22, 1986.
35. Robert E. Dallos, “Icahn Proposes Buyout to Take TWA Private,” Los Angeles Times, July 23, 1987.
36. Elaine X. Grant, “TWA—Death of a Legend,” St. Louis Magazine, July 28, 2006.
37. Ibid.
38. Williams, “Carl Icahn’s Wild Ride.”
39. Grant, “TWA—Death of a Legend.”
40. Robert J. Cole, “Icahn: No Charges Made or Expected,” New York Times, November 20, 1986.
41. Ibid.
42. Scott McCabe, “Crime History: Wall Street Titan Boesky Pleads Guilty to Insider Trading,” Washington Examiner, November 13, 2012.
43. The Associated Press, “Milken Assigned to Bay Area Prison,” New York Times, February 22, 1991.
44. Kurt Eichenwald, “The Collapse of Drexel Burnham Lambert,” New York Times, February 14, 1990.
45. Michael Quint, “Texaco and Icahn End Feud,” New York Times, January 30, 1989.
46. Ibid.
47. Delivering Alpha, CNBC and Institutional Investor, Pierre Hotel, May 5, 2014.
48. James F. Peltz, “’80s Corporate Raider Hasn’t Lost His Taste for Takeovers,” Los Angeles Times, April 9, 2000.
49. Ken Auletta, “The Raid,” New Yorker, March 20, 2006.
50. CNN Library, “Carl Icahn Fast Facts,” April 2, 2017.
51. Andy Serwer, “Carl Icahn’s New Life as a Hedge Fund Manager,” Fortune, November 29, 2004.
52. Ibid.
53. Bloomberg News, “Icahn Bids $5.4 Billion for Mylan,” Los Angeles Times, November 20, 2004.
54. Auletta, “The Raid.”
55. Ibid.
Chapter 10: The Exit and the Pile-On
1. Linette Lopez, “Dan Loeb Explains Why Bill Ackman’s Herbalife Short Thesis Will Go Wrong, and Why the Stock Is Going to Surge,” Business Insider, January 9, 2013.
2. Julia LaRoche, “Dan Loeb Just Gave a Rare Interview and Revealed a New Position in FedEx,” Business Insider, November 12, 2013.
3. Herbalife Earnings Call Transcript, February 20, 2013.
4. Ibid.
5. Ibid.
6. Stuart Pfeifer, “Herbalife to Let Icahn Add Two Directors to Board,” Los Angeles Times, February 28, 2013.
7. Ibid.
8. Martinne Geller, “Herbalife Gives Icahn Board Seats, Right to Boost Stake,” Reuters, February 28, 2013.
9. Martinne Geller and Emily Flitter, “FBI Probes Trading as KPMG Quits Herbalife, Skechers Accounts,” Reuters, April 9, 2013.
10. Ibid.
11. Andrew Beattie, “How Did George Soros ‘Break the Bank of England?’” Investopedia, March 16, 2017.
12. Letter from Congresswoman Linda Sánchez to the FTC, obtained through FOIA request with Commission.
13. Michelle Celarier, “Now, It Gets Ugly: Ackman to Sic SEC on Soros ‘Trade,’” New York Post, August 1, 2013.
14. Julia LaRoche, “Report: Bill Ackman Filed a Complaint with the SEC Alleging George Soros’ Fund Broke Insider Trading Laws,” Business Insider, August 5, 2013.
15. Her
balife Earnings Call Transcript, July 30, 2013.
16. Lawrence Delevingne, “Ackman to PwC: Herbalife May Get You in Trouble,” CNBC.com, September 11, 2013, www.cnbc.com/id/101026213.
Chapter 11: The Lobbyist
1. “What’s All the Buzz About? A Survey of Popular Energy Drinks Finds Inconsistent Labeling, Questionable Ingredients and Targeted Marketing to Adolescents,” April 10, 2013, Staffs of Senators Markey, Durbin, Blumenthal.
2. Michael S. Schmidt, Eric Lipton, and Alexandra Stevenson, “After Big Bet, Hedge Fund Pulls the Levers of Power,” New York Times, March 9, 2014.
3. Sally Greenberg, “Petition for FTC Investigation of Recent Allegations Against Herbalife Ltd.,” National Consumers League, March 12, 2013.
4. Ibid.
5. Letter from José Calderon, President of Hispanic Federation, May 17, 2013.
6. Letter to FTC Chairwoman Edith Ramirez from Congresswoman Loretta Sánchez and Congresswoman Michelle Lujan Grisham, July 26, 2013.
7. Schmidt, Lipton, and Stevenson, “After Big Bet.”
8. Ibid.
9. Ibid.
10. Ibid.
11. Ibid.
12. Ibid.
13. Ibid.
14. Ibid.
15. Ibid.
16. Michelle Celarier, “FTC Herbalife Meeting Spicy,” New York Post, July 17, 2013.
17. CNBC and Institutional Investor’s Delivering Alpha Official Transcript, The Pierre Hotel, July 17, 2013.
18. Linette Lopez, “Carl Icahn Just Ended What May Be His Most Hilarious, Sarcastic, Awesome Interview Ever,” Business Insider, July 17, 2013.
19. Duane D. Stanford, “Stiritz Sides with Icahn for 22% Surge in Herbalife Bet: Retail,” Bloomberg, September 18, 2013.
20. Herbalife Official Transcript, “Herbalife Announces Record Third Quarter 2013 and Introduces 2014 Earnings Guidance,” October 28, 2013.
21. Letter to Investors, Pershing Square Capital Management, October 2, 2013.
22. Robin Hood Investment Conference, Ackman Presentation, November 22, 2013.
23. Duane D. Stanford, “Ackman Says He’ll Take Herbalife Bet to End of the Earth,” Bloomberg, November 22, 2013.
24. Ibid.
25. Trish Regan, Bloomberg Television Interview with Carl Icahn.
26. Ibid.
27. William D. Cohan, “The Big Short War,” Vanity Fair, April 2013.
28. Senator Edward J. Markey, Letter to FTC Chairwoman Edith Ramirez, January 23, 2014.
29. Senator Edward J. Markey, Letter to SEC Chairwoman Mary Jo White, January 23, 2014.
