Pershing Square Capital Management's Bill Ackman Responds to Carl Icahn's Comments on Herbalife

Thu Jan 24, 2013 8:00pm EST

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NEW YORK,  Jan. 24, 2013  /PRNewswire/ -- In response to comments made today by 
Carl Icahn  on Bloomberg Television,  William A. Ackman, CEO of Pershing Square
Capital Management, L.P. ("Pershing Square") today issued the following

"On  March 1, 2003, on behalf of my former fund, Gotham Partners, I entered into
a contract with  Carl Icahn, signed by him, to sell him a 15% stake in Hallwood
Realty Partners.  He paid my investors  $80  per share and agreed to what he
called "schmuck insurance."   The agreement provided that he would pay my
investors an earnout equal to 50% of his profit on Hallwood after he received a
10% annual return if he "sold or otherwise transferred" his shares for value
within three years.  Fewer than 13 months later on   April 14, 2004, HRPT
Property Trust acquired Hallwood.  As a result, Carl and the other Hallwood
shareholders received  $136.16  per share in cash for their shares.   

Under the terms of our agreement, Carl owed my investors about  $4.5 million. 
He refused to pay.  I was forced to sue him on behalf of my investors.  On 
September 6, 2005, the court awarded us summary judgment and found the agreement
to be "clear and unambiguous."  He again refused to pay and appealed.  We won on
appeal and Carl was forced to post a bond for what he owed us and appealed
again.   In general, Carl waited to the last few days to appeal in order to
delay the inevitable.  After eight years and Carl's appeals of the judgment were
denied, in 2011 the Court forced Carl to pay my investors the  $4.5 million 
they were owed plus 9% interest per year from the date of the sale.

After Carl paid my investors, he called me up, congratulated me on winning, and
said that he wanted to be my friend.  I told him that I had no interest in being
his friend.   

Carl Icahn  is a great investor, but, in my experience, he does not keep his

For a copy of the contract agreement between Gotham Partners and Mr. Icahn,
please visit:  

About Pershing Square Capital Management, L.P.

Pershing Square Capital Management, L.P. ("Pershing Square"), based in  New York
City, is a SEC-registered investment advisor to private investment funds. 
Pershing Square manages funds that are in the business of trading - buying and
selling - securities and other financial instruments.  Funds managed by Pershing
Square are short the stock of Herbalife Ltd.  Pershing Square may increase,
decrease, dispose of, or change the form of its investment in Herbalife for any
or no reason, at any time.  Pershing Square may change its views about or its
investment positions in Herbalife at any time, for any reason or no reason. 
Pershing Square may buy, sell, cover or otherwise change the form or substance
of its Herbalife investment.  Pershing Square disclaims any obligation to notify
the market of any such changes.  Please see the full Disclaimer appearing on




SOURCE  Pershing Square Capital Management, L.P.

Pershing Square Capital Management, L.P. - Jennifer Burner, D: +1-212-235-6203,
M: +1-352-281-5357,, or Mike Geller, D:
+1-212-729-2163, M: +1-646-567-3596,

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