Herbalife halted debt offer plan after KPMG resigned
April 30 (Reuters) - Herbalife Ltd recently put plans on hold for a debt offering that would have raised cash for stock buybacks following the resignation earlier this month of its auditor KPMG, the company's chief financial officer said on Tuesday.
Speaking to analysts on a conference call, CFO John DeSimone said the company was in the early stages of preparing an arrangement that would have given it the ability to repurchase "a meaningful amount of company stock."
"We were going down that path, but that path has now been blocked because of the KPMG issues," DeSimone said. "But we do think there are other financing options. We will explore those."
KPMG, one of the world's largest accounting firms, earlier this month resigned as auditor of Herbalife and Skechers USA Inc as the U.S. Federal Bureau of Investigation probed insider trading allegations involving leaked information and a former KPMG senior partner.
Herbalife shares rose 92 cents, or 2.4 percent, to $39.67 at mid-afternoon on the New York Stock Exchange.