Whitney withdraws Herbalife buyout offer |
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Fri, 30 Mar 2007 23:38
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NEW YORK (AP) - Whitney V LP, the largest shareholder of nutritional and diet supplement company Herbalife Ltd., withdrew its $38 per share cash buyout offer Friday after the Herbalife said the bid was too low.In a letter to the board, contained in a filing with the Securities and Exchange Commission, Whitney said it is 'surprised and disappointed that the committee chose not to discuss the proposal with us or include the company's distributors in its strategic review process.'Whitney, which owns about 27 percent of Herbalife's outstanding stock, said it would not be 'fruitful' to continue with the offer and withdrew its proposal. The New Canaan, Conn.-based shareholder said, however, it may reconsider a possible transaction with Herbalife in the future.Herbalife said Thursday that the Feb. 2 offer, which represented about $2.7 billion, was too low and that it would consider an 'improved proposal' from Whitney.This month, Herbalife received a license to operate in China and signed a corporate sponsorship agreement with the L.A. Galaxy soccer tear. Herbalife, which is headquartered in Los Angeles, cited the two developments as reasons why Whitney's offer was insufficient.Herbalife shares fell $1.08, or 2.7 percent, to close at $39.19 on the New York Stock Exchange. The stock, which has traded between $27.73 and $39.60 during the past 52 weeks, had jumped on news of the possible acquisition.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Herbalife gets buyout offer 