WHEN: TODAY, FRIDAY, MARCH 13TH
WHERE: CNBC'S "SQUAWK BOX"
Following are excerpts from the unofficial transcript of a CNBC interview with Bill Ackman, Pershing Square Capital Founder & CEO, today on CNBC's "Squawk Box." Following are links to the video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000361539 and http://video.cnbc.com/gallery/?video=3000361555.
All references must be sourced to CNBC.
ACKMAN ON NO SUBPOENAS:
CERTAINLY NOT BY THE FBI OR DOJ WE HAVE, YOU KNOW, VERY I WOULD SAY PROACTIVELY AND OFFENSIVELY BEEN IN TO SEE THE SEC AND DOJ TO MAKE OUR CASE ABOUT HERBALIFE BUT NO WE HAVE NOT GOTTEN ANY SUBPOENAS ASKING ME TO TESTIFY ABOUT MARKET MANIPULATION OR ANYTHING ELSE THAT IS CONCERNING OUR CONDUCT WITH RESPECT TO HERBALIFE.
ACKMAN ON THE HERBALIFE INVESTIGATION:
IT'S ACTUALLY SOMETHING LESS THAN 50 MILLION AND THE VAST MAJORITY OF THAT IS ACTUALLY LEGAL FEES AND THEN SECOND IS INVESTIGATIVE COSTS WE HAVE BEEN USING HIDDEN CAMERAS RECORDING DEVICES AND WE HAVE HAD INVESTIGATORS GO INTO NUTRITION CLUBS, YOU KNOW, GO TO HERBALIFE DISTRIBUTION CENTERS AND WE'VE SPENT A FAIR AMOUNT OF MONEY DOING THAT WE SPENT A FAIRLY SMALL AMOUNT OF MONEY OUT OF THE TOTAL PACKAGE ON ADVOCACY BUT YOU KNOW IT IS SOMETHING WE'VE DONE AND SOMETHING WE BELIEVE IN.
ACKMAN ON HERBALIFE PYRAMID SCHEME:
BOTTOM LINE IS LET ME MAKE THIS CLEAR HERBALIFE IS A PYRAMID SCHEME OK IT'S A CRIMINAL ENTERPRISE IT PRAYS ON PRINCIPALLY UNDOCUMENTED LATINO PEOPLE IN THE US AND POOR PEOPLE AROUND THE WORLD THIS IS A CONSCIOUS STRATEGY BY THE MOST SENIOR MANAGEMENT OF THE COMPANY I AM SHOUTING IT FROM THE ROOFTOPS.
ACKMAN ON WE STAND BEHIND OUR WORK:
PEOPLE WHO ARE GUILTY OF CRIMES DON'T GO ON NETWORK TV THE MORNING AFTER A STORY APPEARS IN THE WALL STREET JOURNAL SAYING THAT PEOPLE THAT WE HAVE HIRED ARE UNDER INVESTIGATION PEOPLE WHO BELIEVE IN WHAT THEY SAY WHO CARE ABOUT THEIR REPUTATION GO ON NETWORK TV AND ARE PREPARED TO TELL THE WORLD EXACTLY WHAT YOU KNOW I'LL ANSWER ANY QUESTION THAT YOU HAVE YOU CAN ASK ME ANYTHING YOU WANT YOU KNOW THIS, WE HAVE DONE AN ENORMOUS AMOUNT OF RESEARCH ON THE COMPANY WE STAND BEHIND THE WORK.
ACKMAN ON POINTING OUT ERRORS:
HERBALIFE HAS YET TO DISPUTE ANYTHING WE HAVE SAID OTHER THAN BY PUTTING OUT THESE VERY BROAD GENERALIZATIONS THAT WE SAID FALSE AND MISLEADING AND FABRICATING THINGS GO AHEAD I ENCOURAGE HERBALIFE TO GO THROUGH POINT BY POINT ANY OF OUR PRESENTATIONS AND POINT OUT ERRORS IN OUR NUTRITION CLUB PRESENTATION.
ACKMAN ON GILD THE LILY:
WE DON'T NEED TO MAKE FALSE STATEMENTS ABOUT HERBALIFE, ALL RIGHT, MY STATEMENTS COULD NOT BE MORE CLEAR I DON'T NEED TO GILD THE LILY RIGHT, THIS IS A PYRAMID SCHEME I SAID IT LOUD AND CLEAR THAT'S A VIOLATION OF THE LAW THEY ARE INTENTIONALLY DECEIVING PEOPLE PROMISING THEM THAT HERBALIFE IS A WONDERFUL BUSINESS OPPORTUNITY AND THEN THEY TAKE THEIR MONEY.
ACKMAN ON MICHAEL JOHNSON:
MICHAEL JOHNSON, WHO IS CEO OF THIS COMPANY, HAS DISAPPEARED OVER THE LAST TWO YEARS. THAT'S BECAUSE HE PERJURED HIMSELF ON CNBC, WHEN HE SAID 90% OF THE PEOPLE WHO BUY HERBALIFE PRODUCT ARE RETAIL CUSTOMERS AND HE CAN PROVE THAT. THAT WAS A TOTALY FALSE STATEMENT. AFTER HE MADE THAT STATEMENT, MICHAEL JOHNSON'S LAWYERS PROBABLY TOLD HIM HE BETTER NOT GO ON TV ANYMORE. THE COMPANY CONFERENCE CALLS, THE FIRST PART OF THE CONFERENCE CALLS IS RECORDED. SO JOHNSON READS A SCRIPT. THEN HE SAYS NOTHING FOR THE REST OF THE CALL. IF MICHAEL JOHNSON THINKS I'M SAYING FALSE STATEMENTS ABOUT HERBALIFE, ASK MICHAEL JOHNSON TO COME ON CNBC AND ANSWER YOUR QUESTIONS. I GUARANTEE HE WON'T DO IT.
ACKMAN ON ENDO:
THE ENDO TRANSACTION, EVEN THOUGH THEY'VE ALREADY DONE DUE DILIGENCE, THEY SAY IS SUBJECT TO FURTHER DUE DILIGENCE WHICH IS NOT PARTICULARLY INSPIRING IN THAT THEY HAVE ALREADY BEEN THROUGH THE PROCESS AND DONE THEIR BUSINESS. IT'S A 75% STOCK TRANSACTION SO THAT IF SHAREHOLDERS -- THIS IS NOT AN ACQUISITION OF SALIX. IT'S A MERGER WHERE THE SALIX SHAREHOLDERS WILL END UP OWNING 40% OF ENDO. ENDO WILL BE A VERY HIGHLY LEVERED COMPANY. WE THINK OVER SIX TIMES LEVERAGE FOR A BUSINESS THAT DOES NOT HAVE THE QUALITY AND DURABILITY OF PRODUCTS AND CASH FLOWS THAT VALEANT DOES.
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