Carl Icahn defends Ackman, slams Lipton

VIDEO4:5804:58
Icahn on Lipton, Ackman

Maybe it was the martini that helped Carl Icahn publicly support longtime nemesis Bill Ackman.

"I never thought I'd be defending him, but I don't think there's anything wrong with that," Icahn said of the Pershing Square Capital Management founder's bid for Allergan with Valeant during a CNBC interview Tuesday night at the IMN Active-Passive Investor Summit in New York.

"We have our differences, but I never said he's not a smart guy. I think the concept of this is good. I hope it works out better for him than Herbalife did, and I think it will, " Icahn added shortly after taking sips from a martini passed to him while on camera. "There's nothing wrong with making a bid for a company and using someone else's funds."

Icahn added he would consider teaming up with a company to make a hostile bid for another, like Ackman. "Any activism is good as long as it's legal," the billionaire chairman of Icahn Enterprises said.