Herbalife Ltd., the nutrition company hedge fund manager Bill Ackman has accused of being a pyramid scheme, boosted its share buyback by 50 percent to $1.5 billion and announced a $1 billion sale of convertible bonds.
Fourth-quarter earnings were probably $1.26 to $1.30 a share based on preliminary results, excluding some items, the company also said today. Analysts predicted $1.16, the average of estimates compiled by Bloomberg. Sales rose about 20 percent.
For the current quarter, the company predicted a range of $1.24 to $1.28 for earnings per share. Fourth-quarter results will be released Feb. 18.
Federal Trade Commission (FTC) Chairwoman Edith Ramirez plans to meet with minority and consumer activists to hear concerns about Herbalife, the New York Post reported Feb. 2, citing Brent Wilkes, executive director of the League of Latin American Citizens. Ramirez will meet with more than a dozen activists on Feb. 5, the newspaper said.