Pershing Square Capital Management's Bill Ackman Responds to Carl Icahn's Comments on Herbalife

Jan 24, 2013, 20:00 ET from Pershing Square Capital Management, L.P.

NEW YORK, Jan. 24, 2013 /PRNewswire/ -- In response to comments made today by Carl Icahn on Bloomberg Television, William A. Ackman, CEO of Pershing Square Capital Management, L.P. ("Pershing Square") today issued the following statement.

"On March 1, 2003, on behalf of my former fund, Gotham Partners, I entered into a contract with Carl Icahn, signed by him, to sell him a 15% stake in Hallwood Realty Partners.  He paid my investors $80 per share and agreed to what he called "schmuck insurance."   The agreement provided that he would pay my investors an earnout equal to 50% of his profit on Hallwood after he received a 10% annual return if he "sold or otherwise transferred" his shares for value within three years.  Fewer than 13 months later on  April 14, 2004, HRPT Property Trust acquired Hallwood.  As a result, Carl and the other Hallwood shareholders received $136.16 per share in cash for their shares. 

Under the terms of our agreement, Carl owed my investors about $4.5 million.  He refused to pay.  I was forced to sue him on behalf of my investors.  On September 6, 2005, the court awarded us summary judgment and found the agreement to be "clear and unambiguous."  He again refused to pay and appealed.  We won on appeal and Carl was forced to post a bond for what he owed us and appealed again.   In general, Carl waited to the last few days to appeal in order to delay the inevitable.  After eight years and Carl's appeals of the judgment were denied, in 2011 the Court forced Carl to pay my investors the $4.5 million they were owed plus 9% interest per year from the date of the sale.

After Carl paid my investors, he called me up, congratulated me on winning, and said that he wanted to be my friend.  I told him that I had no interest in being his friend. 

Carl Icahn is a great investor, but, in my experience, he does not keep his word."

For a copy of the contract agreement between Gotham Partners and Mr. Icahn, please visit:

About Pershing Square Capital Management, L.P.

Pershing Square Capital Management, L.P. ("Pershing Square"), based in New York City, is a SEC-registered investment advisor to private investment funds.  Pershing Square manages funds that are in the business of trading — buying and selling — securities and other financial instruments.  Funds managed by Pershing Square are short the stock of Herbalife Ltd.  Pershing Square may increase, decrease, dispose of, or change the form of its investment in Herbalife for any or no reason, at any time.  Pershing Square may change its views about or its investment positions in Herbalife at any time, for any reason or no reason.  Pershing Square may buy, sell, cover or otherwise change the form or substance of its Herbalife investment.  Pershing Square disclaims any obligation to notify the market of any such changes.  Please see the full Disclaimer appearing on website




SOURCE Pershing Square Capital Management, L.P.