Fund manager Loeb takes stake in Herbalife, shares soar
(Reuters) - Hedge fund manager Dan Loeb has taken a stake of more than 8 percent in Herbalife Ltd (HLF.N), he reported in a regulatory filing on Wednesday, sparking a sharp rise in shares of the nutritional supplements seller.
Herbalife has come under fire from prominent short-seller Bill Ackman, who has accused the company of being a "pyramid scheme," a charge it vehemently denies.
Loeb's Third Point LLC reported an Herbalife stake of 8.2 percent, or 8.9 million shares.
The stock was temporarily halted as news of Loeb's stake broke. When it resumed trading it spiked 6.1 percent to $40.69.