| NEW YORK, July 22
NEW YORK, July 22 Shares of Herbalife Ltd
rallied on Tuesday in heavy volume, although they only
recovered about half of Monday's steep decline.
The move came as Bill Ackman, the chief executive of
Pershing Square Capital Management and a vocal short against the
company, gave a presentation that described it as a pyramid
The stock spiked 7.6 percent to $58.11 on volume of more
than 5.61 million shares, several times its 50-day average
volume of 1.32 million.
On Monday, Ackman told CNBC that he would expose the $5.3
billion weight-loss and nutrition company as an "incredible
fraud" in the presentation, sparking a stock decline of 11
The stock initially extended that weakness on Tuesday,
falling as much as 2.8 percent before the presentation, but it
subsequently rebounded and is currently on track for its biggest
one-day advance since December.
Last week, Herbalife issued a press release saying Pershing
Square's thesis "is simply false" and that its "information,
presentations and representations cannot be trusted."
(Editing by Nick Zieminski)