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First on CNBC: CNBC Transcript: Bill Ackman, Managing Partner, Pershing Square, on CNBC's "Fast Money Halftime Report" Today

WHEN: TODAY, MONDAY, JULY 21ST

WHERE: CNBC'S "FAST MONEY HALFTIME REPORT"

Following is the unofficial transcript of a FIRST ON CNBC interview with Bill Ackman, Managing Partner, Pershing Square, today on CNBC's "Fast Money Halftime Report." All references must be sourced to CNBC.

WAPNER: ALLERGAN & VALEANT JUST TWO OF BILL ACKMAN'S HOLDINGS IN THE NEWS TODAY. HE IS ALSO ENGAGED IN A VERY PUBLIC WAR OF WORKS AS YOU KNOW BY NOW WITH HERBALIFE WITH THAT COMPANY EVEN CREATING HASTAG WORSTOFWALLSTREET TO DESCRIBE HIM. MR ACKMAN WILL GIVE AN UPDATED PRESENTATION ON HERBALIFE TOMORROW FIRST HOWEVER, HE JOINS US NOW IN A FIRST ON CNBC INTERVIEW. BILL, WELCOME BACK. IT'S GOOD TO SPEAK WITH YOU.

ACKAMN: THANK YOU.

WAPNER: LET'S TALK ALLERGAN FIRST OFF OF MEG'S REPORT AND LOOKING AT THESE EARNINGS WHICH BY ALL ACCOUNTS SHOULD BE VIEWED PRETTY WELL, BEAT ON BOTH THE TOP AND THE BOTTOM LINE. DO YOU AND VALEANT NOW NEED TO RAISE YOUR OFFER FOR ALLERGAN?

ACKMAN: I DON'T THINK SO, ACTUALLY. YOU KNOW, IT'S INTERESTING, IF YOU LOOK AT THE MARKET REACTION, VALEANT STOCK'S UP 2.4% TODAY. ALLERGAN'S UP 1.9% TODAY. THOSE ARE PRETTY SIGNIFICANT MOVES. AND THE DEAL SPREAD IS DOWN 56 BASIS POINTS TO 2.8%. SO WHAT DOES THIS MEAN? IT MEANS THAT THE MARKET BELIEVES THAT THE PROBABILITY OF VALEANT ACQUIRING ALLERGAN HAS GONE UP. AS THE DEAL SPREAD NARROWS, PEOPLE PERCEIVE THE PROBABILITY INCREASING. WHY IS THAT? WHY DO PEOPLE BELIEVE THE DEAL HAS A HIGHER PROBABILITY OF HAPPENING? THE ANSWER IS THAT ALLERGAN HAS NOW GIVEN IT ITS BEST SHOT. IF YOU REMEMBER IN FEBRUARY, THEY SAID THEY WERE GUIDING TO 12% TO 15% EARNINGS GROWTH. AND THEN VALEANT MADE ITS PROPOSAL TO ACQUIRE THE COMPANY. AND THEN THEY HELD A CONFERENCE CALL AND SAID WE'RE TAKING OUR GUIDANCE UP TO 20% EARNINGS GROWTH OVER THE NEXT FIVE YEARS. AND SHAREHOLDERS CAME BACK AND SAID THAT'S NOT ENOUGH. YOU CAN'T JUSTIFY IT BEING INDEPENDENT ON THAT BASIS. AND THEN THEY WENT BACK AND THEY ADOPTED WHAT I CALL A NEW PLAN, THEY PROBABLY SHOULD LABEL IT VALEANT LIGHT. WHAT ARE THEY DOING? THEY'RE CUTTING ONE-THIRD OF THEIR R&D WORK FORCE, AND THEY'RE CUTTING 13% OF THEIR OVERALL WORK FORCE WITH THE COMPANY. AND THEY'RE ADOPTING A LOT OF THE VALEANT PLAYBOOK IN TERMS OF STREAMLINING THE ORGANIZATION OR ATTEMPTING TO. AT LEAST THEY SAY THEY'RE GOING TO. THE PROBLEM IS THAT GETS THEM TO SUPPOSEDLY TO $10 A SHARE IN 2016 IN TERMS OF EARNINGS. BUT THE QUALITY OF THOSE EARNINGS IS NOT VERY HIGH QUALITY. THE GROWTH IN EARNINGS THAT YOU'RE SEEING THAT THEY'RE ACHIEVING HERE IS NOT BEING DRIVEN BY AN INCREASE IN REVENUE GROWTH. IN FACT, THEY'RE NOW SAYING REVENUE GROWTH IS GOING TO BE 50 BASIS POINTS PER ANNUM LESS THAN WHAT THEY WERE SAYING AS RECENTLY AS, YOU KNOW, 45 DAYS AGO.

WAPNER: THERE ARE SOME WHO ARE GOING TO POTENTIALLY LOOK AT THE RESULTS AND MAYBE ALLERGAN MAKES THE CASE ITSELF THAT SEE, WE DON'T NEED VALEANT. WE'VE TOLD YOU ALL ALONG WE DON'T NEED VALEANT. WE'RE GOING TO GO DO OUR OWN THING AS OUR OWN PHARMA REPORTER, MEG TERRELL, ALLUDED TO AS WELL. THAT'S A CREDIBLE ARGUMENT THAT CAN BE MADE LOOKING AT THESE RESULTS, IS IT NOT?

ACKMAN: NO IT IS NOT CREDIBLE AT ALL. I REALLY STRONGLY ENCOURAGE YOU AND YOUR LISTENERS TO LISTEN TO THE CONFERENCE CALL, THE REPLAY. YOU KEPT HEARING QUESTIONS FROM ANALYSTS.THE MOST COMMON QUESTION WAS WHY NOW. DAVID, THE CEO, WE'VE BEEN TALKING ABOUT ASKING YOU FOR COST EFFICIENCY FOR YEARS. AND THE COMPANY'S DONE NOTHING. ALLERGAN HAS 1200 BASIS POINTS HIGHER, THEY SPEND 1200 BASIS POINTS MORE ON OVERHEAD THAN THE COMPETITIVE SET. THAT'S AN INCREDIBLE GAP. AND NOW THEY'LL START TO CLOSE THAT GAP WHICH GENERATES AN INCREASE IN EARNINGS. BUT REALLY WHAT YOU'RE DOING OVER THE NEXT SEVERAL YEARS IS CUTTING OUT FAT YOU SHOULD HAVE CUT OUT A LONG TIME AGO. AND THE PROBLEM IS WHILE THEY CAN -- PERHAPS THEY CAN CUT COSTS, AND I THINK ONE OF THE ANALYSTS ASKED A QUESTION, THERE'S A CREDIBILITY ISSUE, DAVID, BECAUSE YOU KNOW, WE'VE BEEN ASKING YOU FOR THIS FOR YEARS NOW. ONLY IN RESPONSE TO A VALEANT BID ARE YOU SAYING YOU'RE GOING TO DELIVER. HOW CAN WE BE CONFIDENT THAT WHEN VALEANT GOES AWAY, THAT YOU GUYS ARE GOING TO DELIVER. THAT'S THE FIRST POINT. THE SECOND POINT IS ONE REALLY OF EXECUTION. VALEANT RUNS A VERY DISCIPLINED ZERO-BASED BUDGET COST CONTROL OPERATION. IN TERMS OF HOW THEY RUN THEIR BUSINESS. THAT IS A VERY, VERY DIFFERENT CULTURE THAN ALLERGAN. AND I THINK THAT, YOU KNOW, OUR EXPERIENCE IS AS A SHAREHOLDER ACTIVIST, YOU TAKE STAKE IN A COMPANY THAT HAS UNDERACHIEVED ON WHATEVER THE METRIC IS, AND HERE THIS IS COST DISCIPLINE AND WASTEFUL R&D SPENDING AND THEN ALL OF A SUDDEN THE COMPANY SAYS OH, WE'RE GOING TO FIX THIS PROBLEM BUT TYPICALLY SHAREHOLDERS DON'T BELIEVE MANAGEMENT BECAUSE WHEN THEY'VE BEEN ASKING FOR IT FOR YEARS AND IT DOESN'T GET DELIVERED ONLY WHEN THE CEO IS AT RISK OF GETTING THROWN OUT, DOES HE SEE ALL OF A SUDDEN GET RELIGION, THAT'S NOT A PARTICULARLY CREDIBILITY-BOOSTING PLAN.

WAPNER: THERE IS AT LEAST ONE WALL STREET FIRM THAT I SAW TODAY THAT IS OUT SAYING THAT ALLERGAN'S VALUE IS NOW $180 TO $200 A SHARE FOR THE OFFER. ARE YOU SAYING THAT ABSOLUTELY NO WAY WILL YOU AND VALEANT RAISE THEIR OFFER?

ACKMAN: VALEANT CONTROLS WHAT THEY'RE PREPARED TO PAY.

WAPNER: YOU OBVIOUSLY HAVE INFLUENCE IN THE PROCESS HERE.

ACKMAN: THE ANSWER IS WE HAVE SOME. I MEAN, WE GAVE UP $20 A SHARE OF VALUE AND AGREED TO TAKE ALL STOCK IN ORDER TO GET VALEANT TO INCREASE THEIR BID. MIKE SCRAPED THE BOTTOM OF THE BARREL IN TERMS OF WHAT WE WERE PREPARED TO DO TO GET A DEAL DONE. WHAT HE HAS SAID PUBLICLY IS THE BOARD ENGAGES IN A GOOD-FAITH NEGOTIATION IMMEDIATELY, THAT HE'LL NEGOTIATE. AND THAT IS A SIGNAL THAT PERHAPS THERE'S MORE IN HIS POCKET. BUT AS YOU HEARD DAVID PINE ON THE CALL, HE WAS VERY, VERY CLEAR THAT, YOU KNOW, IT SOMEHOW GROSSLY UNDERVALUES THE COMPANY. LET ME JUST ADDRESS WHAT YOU JUST SAID. ANALYSTS, $180 TO $200 PRICE TARGET, AND MY GUESS IS THAT'S A PRICE TARGET OUT A YEAR OR SO. BECAUSE IF YOU TAKE THE 2016 CALENDAR YEAR, MOST ANALYSTS VALUE A COMPANY BASED ON KIND OF FORWARD EARNINGS. HE'S SAYING IT'S WORTH 18 TO 20 TIMES 2016. THAT'S WHERE THE STOCK PRICE IS GOING TO GET TO. AND I THINK THAT'S WITHIN THE RANGE. THAT MIGHT BE A REASONABLE WAY TO THINK ABOUT THE BUSINESS. WELL, TODAY'S VALUE BASED ON WHERE VALEANT IS TRADING TODAY IS $175 A SHARE. AND THAT'S WITH STILL UNCERTAINTY ABOUT THE TRANSACTION HAPPENING.

WAPNER: SURE.

ACKMAN: AND IF THE BOARD WERE TO COME TO ITS SENSES AND SAY, YOU KNOW WHAT? WE'RE GOING TO SIT DOWN AND SEE IF WE CAN NEGOTIATE A DEAL WITH VALEANT, VALEANT'S STOCK WOULD SHOOT UP $10 A SHARE, MAYBE MORE. AND THAT WOULD INCREASE THE VALUE OF THE BID BY ANOTHER $8 A SHARE. .83 SHARES. THAT GETS YOU TO $184 A SHARE. YOU HEARD JOHN PAULSON SAY -- AND WE AGREE WITH JOHN PAULSON'S VIEW – IF THIS DEAL WERE TO HAPPEN YOU KNOW CLOSE AND THE STOCK'S WORTH $220, $180 TO $200 IS NOT COMPETITIVE WITH, YOU KNOW, $220 A SHARE. AND THE OTHER POINT IS ALLERGAN CAN ONLY ACHIEVE SO MUCH AS A STANDALONE COMPANY. YOU KNOW, THE SYNERGIES THAT VALEANT IS ACHIEVING HERE ON THE COST SIDE ARE MUCH LARGER BECAUSE YOU'RE COMBINING TWO COMPANIES WITH OVERLAPPING PRODUCT LINES. THAT'S NUMBER ONE. BY THE WAY, THEY HAVE THE TRACK RECORD TO PROVE THAT THEY CAN DO IT. THEN, OF COURSE, THERE'S STRATEGIC SYNERGIES. IT WAS INTERESTING ON THE CALL, DAVID PYOTT WAS ASKED, WHERE ARE YOU GOING TO MAKE ACQUISITIONS? HE SAID, LOOK. IN OUR KIND OF STRATEGIC SET, THERE REALLY AREN'T OPPORTUNITIES. WE'RE GOING TO HAVE TO DO A DEAL THAT'S OUTSIDE OF THE CORE. AND WE'RE GOING TO HAVE TO FIND A NEW, YOU KNOW, KIND OF AREA OF COMPETENCY TO GO PURSUE. FIRST OF ALL, THOSE KIND OF ACQUISITIONS, ALLERGAN DOES NOT HAVE A TRACK RECORD MAKING MAJOR ACQUISITIONS OUTSIDE ITS CORE DISCIPLINE AS OPPOSED TO ADDING ON TO SOMETHING IN, LET'S SAY, RELEVANT TO BOTOX, FOR EXAMPLE. BECAUSE THEY'VE GOT A LOT OF MARKET SHARE IN THEIR PARTICULAR SEGMENT. SO THEY CAN'T DO A SYNERGISTIC ACQUISITION. VALEANT IS ONE OF THE MOST SYNERGYSTIC ACQUISITIONS I'VE SEEN. THE SECOND PIECE OF IT IS VALEANT IS A CANADIAN COMPANY, HAS A MUCH LOWER TAX RATE, AND ALLERGAN AS A STANDALONE BUSINESS CAN ACHIEVE THAT TAX RATE. YOU KNOW, BENEFIT. IT'S VALEANT LIGHT ON THE COST SIDE, AND IT'S STRATEGICALLY AND TAX EFFICIENTLY, YOU KNOW, WEAK OTHERWISE.

WAPNER: LET ME ASK YOU ONE MORE QUESTION ON THIS PARTICULAR CASE. AND THEN WE CAN MOVE ON TO HERBALIFE. WE HAVE THIS COMPLAINT BY VALEANT BOTH U.S. AND CANADIAN REGULATORS ABOUT WHAT IT CALLS FALSE AND MISLEADING STATEMENTS ABOUT ITS BUSINESS MODEL, RIGHT? SO ALLERGAN COMES BACK AND SAYS, WELL, WE STAND BY EVERYTHING WE SAID. YOU YOURSELF HAVE ADMITTED, I BELIEVE, THAT VALEANT IS WHAT PEOPLE TERM A ROLLUP. YOU JUST SAY IT'S A GOOD ROLLUP. AND I WANT YOU TO -- IF YOU WOULD -- ADDRESS COMMENTS THAT JIM CHANOS MADE DIRECTLY TO US ON THIS PARTICULAR PROGRAM ABOUT VALEANT. I'D LIKE TO READ YOU HIS COMMENT AND THEN HAVE YOU REACT IF YOU WOULDN'T MIND. HE SAID ROLLUPS PRESENT A UNIQUE SET OF PROBLEMS. THEY'RE USUALLY ACCOUNTING DRIVEN. WE THINK VALEANT IS PLAYING AGGRESSIVE ACCOUNTING GAMES WHEN THEY BUY COMPANIES AND WRITE DOWN ASSETS. END QUOTE. HE ALSO POINTS OUT A LARGE NUMBER OF EXECUTIVE DEPARTURES. HE POINTS OUT A LOT OF INSIDER SELLING AS WELL. AS A RED FLAG, IF YOU WILL. HOW WOULD YOU RESPOND TO MR CHANOS?

ACKMAN: A COUPLE OF WAYS. NUMBER ONE, JIM'S WRONG. I LIKE JIM. SO I SAY THAT REPSPECTFULLY. THE DAY AFTER WE ANNOUNCED THE DEAL, I KNEW JIM WAS SHORT THE STOCK. I CALLED HIM UP AND LEFT A MESSAGE SAYING I WOULD LOVE TO SIT DOWN WITH HIM AND EXPLAIN HOW HE GOT IT WRONG. HE NEVER RETURNED MY CALL. I APPEARED ON "SQUAWK BOX" WITH ANDREW SORKIN AND MICHAEL PORTER TO TALK ABOUT VALEANT'S BUSINESS MODEL, AND I INVITED JIM TO JOIN THE SHOW SO I COULD ADDRESS ANY AND ALL CONCERNS THAT HE HAD. JIM WAS NOT AVAILABLE, NOR DID HE RETURN MY PHONE CALL. I DON'T EVEN KNOW IF JIM IS SHORT VALEANT ANYMORE. AND ALSO HE DISCLOSED I THINK THROUGH "THE WALL STREET JOURNAL" THAT HE HAD PURCHASED ALLERGAN. SO HE'S REALLY IN THE SPREAD BUSINESS. HE ALSO MADE A COMMENT THERE'S A REAL BUSINESS THERE. THERE ARE ROLLUPS THAT ARE – BY THE WAY, BERKSHIRE HATHAWAY IS A ROLLUP.

WAPNER: I'VE HEARD YOU MAKE THAT CASE BEFORE.

ACKMAN: NO, NO, LET ME JUST DISTINGUISH. THE ROLLUPS THAT FAIL TEND TO BE STOCK DRIVEN. MEANING THEY'RE COMPANIES THAT USE AGGRESSIVE ACCOUNTING TO GENERATE GAAP EARNINGS THAT ARE PERHAPS FRAUDULENT OR OVERSTATED. THEY GET A HIGH MULTIPLE ON THEIR STOCK, AND THEN THEY USE THEIR STOCK CURRENCY TO BUY OTHER COMPANIES ON A SO-CALLED ACCRETIVE BASIS. THERE'S NOTHING SYNERGISTIC OR STRATEGIC ABOUT THE ACQUISITION THAT THEY'RE MAKING. AND THEN EVENTUALLY THE ONLY COMPETITIVE ADVANTAGE THEY HAVE IS A HIGH MULTIPLE STOCK PRICE. AND WHEN THE STOCK PRICE GOES DOWN, THE ABILITY TO GROW DISAPPEARS. SO THAT'S A BAD ROLLUP. AND LET'S JUST TALK ABOUT VALEANT. IF YOU LOOK AT THE HISTORY OF VALEANT OVER THE LAST SIX YEARS, THE COMPANY HAS GENERALLY NOT USED STOCK TO MAKE ACQUISITIONS. IN FACT, MIKE PEARSON HAS BROUGHT BACK AS A PERCENTAGE OF THE SHARES OUTSTANDING A LARGE AMOUNT OF STOCK. $2.6 BILLION OF STOCK IN THE EARLY YEARS OF THE COMPANY. PEARSON HIMSELF, HE MADE A COMMENT ABOUT INSIDER SELLING. MIKE OWNS $1.5 BILLION OF STOCK AND HE'S LOCKED UP UNTIL 2017, CAN'T SELL A SHARE. HOWARD SCHILLER, THE CFO OWNS I THINK IN THE TENS OF MILLIONS, APPROACHING $100 MILLION WORTH OF COMMON STOCK IN THE COMPANY. HE'S ONLY BEEN THERE A FEW YEARS. PEARSON INVESTED SOMETHING LIKE $50 MILLION OF CASH IN THE COMPANY. YOU KNOW, THIS IS VERY, VERY DIFFERENT -- YOU KNOW, THE SAME ADJUSTMENTS TO GET TO A NON-GAAP EARNINGS NUMBER THAT ALLERGAN USES VALEANT USES. THE ONLY REASON WHY THOSE ADJUSTMENTS ARE MORE MATERIAL IS BECAUSE VALEANT HAS MADE A LOT MORE ACQUISITIONS THAN ALLERGAN HAS. LET ME GET TO SOMETHING ON THE CALL THAT I THINK IS VERY DISTURBING. WHAT WAS VERY DISTURBING TO ME ON THE CALL AND I'M SURE TO ANY SHAREHOLDER WHO WAS LISTENING IS ONE ANALYST ASKED THE QUESTION ABOUT ACQUISITIONS. IN ORDER TO GET A BETTER TAX RATE, YOU'LL NEED TO DO AN INVERSION TRANSACTION AND THAT NEEDS A SHAREHOLDER VOTE. HOW ARE YOU GOING TO GET THAT ACCOMPLISHED? THE SECOND QUESTION WAS WELL, HOW DO YOU THINK ABOUT DEALS -- HOW DO YOU JUDGE WHETHER IT'S GOOD OR BAD? THEN HE SAID WITH RESPECT TO A STOCK ACQUISITION, WE'RE GOING TO NEED TO MAKE SURE IT'S A VERY COMPELLING DEAL SO WE CAN GET 50% OF OUR SHAREHOLDERS TO SUPPORT IT, OKAY? THEY DIDN'T SAY ANYTHING WITH RESPECT TO A CASH ACQUISITION. HE DIDN'T SAY ANYTHING ABOUT MAKING A VERY COMPELLING TRANSACTION. AND HE SAID WE HAVE PLENTY OF TIME BEFORE THE SPECIAL MEETING IS CALLED. SO THINK ABOUT THIS DYNAMIC, OKAY? WHY ARE WE CALLING A SPECIAL MEETING? WE ARE CALLING A SPECIAL MEETING SO THE SHAREHOLDERS CAN EXPLAIN, EXPRESS THEIR VIEWS THAT THEY WANT THE VALEANT DEAL OR NOT. THEY COULD DECIDE THEY DON'T WANT IT. AT LEAST THAT'S THE FIRST TIME THE COMPANY'S GOING TO HAVE AN OPPORTUNITY TO HEAR IN AN OFFICIAL WAY WHAT THEIR SHAREHOLDERS BELIEVE. AND WHAT IS THE COMPANY DOING? THEY'RE DOING EVERYTHING THEY POSSIBLY CAN TO DELAY THAT DATE. AND IN THE MEANTIME, THEY ARE RUSHING TO GET A CASH ACQUISITION DONE. THAT'S NOT IN ANY OF THEIR CORE AREAS, THAT THEY HAVE NO TRACK RECORD WHATSOEVER IN ACHIEVING. THEY NEED TO LEVER UP TO ACQUIRE AND EVERY SELLER IN THE WORLD KNOWS THIS IS A DESPERATE BUYER. I MEAN, IT'S A TRAIN WRECK, OKAY? AND IF THE COMPANY ACTUALLY DOES IT, WE'LL SUE THEM. AND VALEANT WILL END UP BUYING THE COMPANY AT A LOWER PRICE.

WAPNER: LAST QUESTION ON THIS AND THEN WE WILL MOVE ON TO HERBALIFE. TODAY'S EARNINGS AND THE CONFERENCE CALL DID THIS POTENTIAL DEAL MOVE CLOSER TO HAPPENING OR A STEP FURTHER AWAY?

ACKMAN: IT MOVED MATERIALLY CLOSER TO HAPPENING. I THINK THE BEST EVIDENCE IS JUST LOOKING AT THE RELATIVE MOVE IN THE STOCK PRICES, AGAIN, DEAL SPREAD DOWN 50 BASIS POINTS. VALEANT STOCK UP 2.6%. YOU KNOW, WHY IS VALEANT STOCK UP? TWO REASONS. PEOPLE BELIEVE THE PROBABILITY OF THE DEAL GOING UP HAS INCREASED. THAT'S WHY THE STOCK IS UP. AND SECOND THING IS VALEANT'S PUT UP WITH A LOT OF MUDSLINGING AND FALSE -- I WROTE A LETTER TO THE BOARD OF DIRECTORS OF THIS COMPANY BY MAKING VERY CLEAR TO THEM THAT MAKING FALSE AND MATERIALLY MISLEADING STATEMENTS ABOUT VALEANT'S BUSINESS IS ILLEGAL. THEY DID IT AGAIN ON FRIDAY IN AN INCREDIBLY GLARING WAY.. ONE LAST LITTLE POINT HERE --

WAPNER: YEAH, I'VE GOT TO MOVE ON.

ACKMAN: PYOTT SHOWED EXTREME IGNORANCE. WE CHALLENGED THE BAUSCH & LOMB NUMBERS CAUSE HE SAID THE CONTACT LENS SALES ARE UP 38%. WHAT HE FORGETS IS THAT BAUSCH & LOMB IS A RELATIVELY SMALL PLAYER IN CONTACT LENSES AND THEY'VE LAUNCHED TWO NEW PRODUCTS IN THE LAST 12 MONTHS. ONE IN THE LAST QUARTER AND OBVIOUSLY GROWING OFF A SMALL BASE. THEY'RE GROWING VERY RAPIDLY. LET'S GO TO HERBALIFE.

WAPNER: LET'S TALK HERBALIFE YOU HAVE ANOTHER PRESENTATION TOMORROW RIGHT HERE IN NEW YORK CITY. WHAT ARE WE GOING TO LEARN?

ACKMAN: YOU'RE GOING TO LEARN WHY HERBALIFE IS GOING TO COLLAPSE. AND THAT'S A PRETTY STRONG STATEMENT. BUT THIS IS THE LARGEST FRAUD -- PUBLIC FRAUD IN TERMS OF SCALE, OF COUNTRIES INVOLVED, HARM TO PEOPLE. BUT WE'RE GOING TO SHOW YOU WITH PARTICULARITY, OKAY, AND WE HAVE HUNDREDS OF HOURS OF RECORDED VIDEO, AUDIO. WE HAVE INTERNAL DOCUMENTS THAT WERE GIVEN TO US BY SOME EMPLOYEES THAT FELT IT WAS IN THE BEST INTERESTS OF THE WORLD TO KNOW WHAT'S REALLY NOT GOING ON AT THE COMPANY. AND WE'RE GOING TO DELIVER THAT IN DETAIL. AND I WANT TO MAKE CLEAR THE LAST TIME WE DID A HERBALIFE PRESENTATION IN PERSON WAS DECEMBER 20th OF 2012. AND MICHAEL JOHNSON SAID THAT WE WOULDN'T ALLOW HIM TO COME TO THE PRESENTATION. THAT IS FALSE. I WANT TO MAKE IT VERY CLEAR THAT MICHAEL JOHNSON AND HIS SENIOR MANAGEMENT TEAM ARE WELCOME TO COME TO THE PRESENTATION. WE'LL BE HAPPY TO SIT THEM IN THE FRONT ROW IF THEY WOULD LIKE. WE'RE HAPPY TO LET THEM ANSWER QUESTIONS OR EVEN ASK QUESTIONS DURING THE PRESENTATION. WE'RE HOLDING IT AT THE AXA EQUITABLE AUDITORIUM, 10:00 A.M. TOMORROW MORNING 52ND AND 7TH AVENUE. AND YOU REGISTER AT WWW.HERBALIFEPYRAMIDSCHEME.COM. COME EARLY, LIMITED SEATING. THIS WILL BE THE MOST IMPORTANT PRESENTATION THAT I HAVE MADE IN MY CAREER. SO HOW'S THAT FOR RAISING EXPECTATIONS. BUT WE WON'T DISAPPOINT.

WAPNER: AT THE SAME TIME, YOU KNOW, BILL, HERBALIFE IS CERTAINLY STEPPING UP THEIR OWN RHETORIC IN RELATION TO YOU. THEY CALL YOU -- AND BY A HASHTAG ON TWITTER -- TWITTER – THEWORSTOFWALLSTREET THEY GO ON TO SAY AND I QUOTE PAYING PEOPLE TO SPREAD BAD INFO ISN'T OK BUT PERSHING SQUARE THINKS SO. HOW DO YOU REPOND TO THAT AS WE LOOK ON OUR SCREEN RIGHT NOW THE PICTURE OF THIS THE WORST OF WALL STREET OF BILL ACKMAN MANIPULATION?

ACKMAN: I LOOK FORWARD TO TALKING TOMORROW. WE HAVE NOT PAID ANYONE TO SPREAD BAD INFORMATION ABOUT HERBALIFE. AND I LOOK FORWARD TO GOING THROUGH THE FACTS, THE FACTS, THINK ABOUT A PUBLIC COMPANY WITH THAT KIND OF A HASHTAG. I ENCOURAGE YOU TO READ THE PRESS RELEASE THEY PUT OUT, A TWO-PAGER TALKING ABOUT THEIR BUSINESS.

WAPNER: I HAVE THAT IN FRONT OF ME.

ACKMAN: YEAH, IT'S AN ASTONISHING RELEASE. THE COMPANY IS CLEARLY PANICKING. AND WHAT I'VE HEARD FROM PEOPLE OF YOUR ILK IN THE MEDIA WORLD, THEIR PR MACHINE THEY ARE QUOTE, UNQUOTE, FREAKED. THE ANSWER WHY THEY'RE FREAKED IS THEY KNOW WHAT THEY HAVE, OKAY? AND WE ARE GOING TO EXPOSE AN INCREDIBLE FRAUD TOMORROW. THE FRAUD IS IN THE WAY THEY FUNDAMENTALLY OPERATE. THESE SO-CALLED NUTRITION CLUBS WHERE THEY TALK ABOUT PLACES FOR PEOPLE TO GET TOGETHER AND LEARN ABOUT GOOD NUTRITION AND LOSE WEIGHT. THAT'S NOT WHAT'S HAPPENING AT THESE VENUES. I LOOK FORWARD TO SHARING THAT WITH YOU TOMORROW. INTERESTING DAY.

WAPNER: THEY SAY IN THE AFOREMENTIONED PRESS RELEASE, THE MEMBER-SPONSORED NUTRITION CLUBS. PLAY A POSITIVE ROLE IN PROMOTING A COMMUNITY BASED APPROACH TO HEALTH AND WELLNESS THEY OFFER SOME STATISTICS THAT BACK THAT UP. THEY CONTINUE TO SAY, BILL, THAT HERBALIFE CONTINUES TO FACE AN UNPRECEDENTED AND UNRELENTING ATTACK FROM YOU AND PERSHING SQUARE TO SUPPORT YOUR BILLION-DOLLAR BET TO MANIPULATE AND DRIVE HERBALIFE'S STOCK PRICE TO ZERO TO THE DETRIMENT OF OUR INVESTORS, MEMBERS, CUSTOMERS AND EMPLOYEES.

ACKMAN: I THINK -- I REALLY APPRECIATE THAT THEY MADE THAT STATEMENT BECAUSE IT WILL STAND -- I LOOK FORWARD TO HOW YOU FEEL ABOUT THAT. LET'S HAVE A CONVERSATION ABOUT IT TOMORROW AFTER WE SHARE THE FACTS.

WAPNER: LET ME ASK YOU AS WELL AS WE WRAP THIS UP, YOU, BACK IN MARCH, GAVE THE DETAILS AND THE RESULTS OF A STUDY THAT RELATED TO HERBALIFE'S BUSINESS IN CHINA. THE STOCK SUFFERED AS A RESULT OF YOUR FINDINGS OF THE STUDY THAT YOU COMMISSIONED. THERE SEEM TO BE QUESTIONS TODAY ABOUT THE VERACITY OF THE INFORMATION THAT CAME OUT OF THAT STUDY THAT HIT THE STOCK AS IT RELATES TO HERBALIFE'S BUSINESS PRACTICES IN CHINA. DO YOU STAND BY THE RESULTS OF THAT STUDY 100% TODAY?

ACKMAN: 100%. I HAVE NO IDEA WHAT YOU'RE TALKING ABOUT, BUT IF YOU'RE INTERESTED INTO GETTING MORE DETAIL ON THAT, ASK ME AFTER TOMORROW. I WOULD SAY ACTUALLY INTERESTINGLY WHAT'S GOING ON IN CHINA FOR HERBALIFE IS A SIDESHOW COMPARED TO WHAT'S GOING ON FUNDAMENTALLY AND WHAT'S BEEN THE BIGGEST DRIVER OF THE COMPANY OVER THE LAST FIVE YEARS, WHICH IS WHAT THEY CALL NUTRITION CLUBS. WE LOOK FORWARD TO SHARING THAT INFORMATION WITH YOU AND THE REAST OF THE WORLD TOMORROW. AND AGAIN, GO TO WWW HERBALIFEPYRAMIDSCHEME.COM TO REGISTER. I PUT MY REPUTATION ON THE LINE.

WAPNER: BILL, WE WILL LEAVE THAT AT THE LAST WORD, AS WE ARE LOOKING AT HERBALIFE SHARES HERE UNDER SOME OBVIOUS PRESSURE, KNOWING THAT YOU'RE GIVING THIS PRESENTATION TOMORROW, SORT OF SPECULATING AS EXACTLY WHAT YOU WILL SAY ON THAT STAGE AT 10:00 EASTERN TIME, BUT HERBALIFE SHARES ARE DOWN ABOUT 5 OR SO

PERCENT ON THAT NEWS AND LET YOU KNOW THAT WE HAVE A FIRST ON CNBC INTERVIEW TOMORROW WITH HERBALIFE CFO, JOHN DeSIMONE. IT SHOULD BE AN INTERESTING DAY, BILL, ON THE HERBALIFE FRONT ALL THE WAY AROUND.

ACKMAN: I THINK A HIGH PROBABILITY HE CANCELS. WHAT TIME WILL HE ON?

WAPNER: THE 9:00 A.M. HOUR TOMORROW WITH ME.

ACKMAN: I LIKE THAT HE IS ON BEFORETHE PRESENTATION. I LUKE FORWARD TO HEARING WHAT HE HAS TO SAY

WAPNER: ALL RIGHT, BILL ACKMAN, TALK TO YOU SOON.

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