Herbalife says that it was in talks to be acquired and taken private, but that those negotiations ended last week.
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The nutritional supplement company said Monday that in response to those talks, it is offering to buy $600 million worth of its shares from existing investors in an auction. Herbalife, which has its U.S. headquarters in Los Angeles, says that investors who sell their shares will get a contingent cash payment if the company is sold within two years. The maneuver, known as a modified Dutch auction, will pay shareholders between $60 per share and $68 per share. The offer ends next month.
Shares of Herbalife Ltd. jumped 9 percent at the opening bell, to $67.78.