A look at the billionaire hedge fund managers battling over the future of a global nutrition supplement company:
“In a recent interview on CNBC, the blunt-talking and cagey Icahn hinted there would be a concerted effort to take Ackman down a peg or two in the Herbalife battle, which ‘could be the mother of all the short squeezes,’ he said, referring to a technique that can be used by a group of traders who band together to try to clobber a short-seller.
“Chapman agrees. ‘This is like Wall Street’s version of the movie Kill Bill,’ he says. ‘Bill Ackman has been so arrogant and disrespectful to so many people, presumably on the theory that he would never be in a position where these subjects of his disrespect could actually act on their deserved hatred for him But now, with JCPenney [which is down 20 percent from Ackman’s 2010 investment] and Herbalife going against Ackman, his ‘stock’ has moved down, allowing once again, a decade later, for those holding their Kill Bill puts [i.e., options they have been waiting to cash in] to exercise them against him.’”
