Bill Ackman: Carl Icahn looks to sell Herbalife because 'he knows this is toast'
Hedge fund manager Bill Ackman told CNBC on Friday he was approached indirectly by Carl Icahn to purchase the billionaire's stake in Herbalife — Ackman's longtime short target.

Asked why Icahn would want to sell his stake in Herbalife, Ackman responded: "I think he knows this is toast" and "he's made bunch of money."



Herbalife shares slumped about 4.5 percent Friday after Ackman made his comments.



Icahn said: "I am not commenting on rumors and stories about what I am doing."

The Pershing Square Capital Management founder confirmed the gist of a Wall Street Journal report that Icahn was considering selling his stake in Herbalife to a group including the nutritional supplement firm's arch-nemesis Ackman.

Icahn "came to me" through investment bank Jefferies Group with a proposal in early August to "cover my short" position, Ackman said on "Squawk Box."

Saying no to Icahn at first, Ackman said he later reconsidered for only for a few million shares. Icahn owns 17 million-plus shares valued at around $1 billion.



Ackman said if he were to buy a small stake and sell it right away, he would probably lose about $30 million. "I would spend $30 million to get Carl out. I would probably spend more."

The Pershing Square chief is still betting against Herbalife — short more than $1 billion on the stock. He's been critical of Herbalife for years, calling it a pyramid scheme — allegations the company denies.