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WHEN: TODAY, FRIDAY, August 26, 2016
WHERE: CNBC'S "SQUAWK BOX"
Following are excerpts from the unofficial transcript of a CNBC interview with Pershing Square's Bill Ackman on CNBC's "Squawk Box" today. During the interview, Ackman discusses Herbalife, among other topics.
Following are links to video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000546282, http://video.cnbc.com/gallery/?video=3000546279 and http://video.cnbc.com/gallery/?video=3000546283.
All references must be sourced to CNBC.
ACKMAN ON JEFFERIES:
I WAS CONTACTED BY JEFFRIES, I THINK, LATE -- THE WEEK OF THE 4th OR 5th. OF AUGUST. AND, YOU KNOW, THEY WERE TRYING TO PUT TOGETHER A BLOCK TRADE TO TAKE CARL OUT. I VIEW THAT, OBVIOUSLY, VERY FAVORABLY, THAT HE'S, YOU KNOW, OBVIOUSLY A SELLER NOW.
ACKMAN ON THE DEMISE:
CARL I WOULD SAY IS THE LEADER OF WHAT CREATES THE CONFIDENCE IN THE COMPANY. AND IF CARL SELLS, I THINK IT CAN ACCELERATE THE DEMISE OF THE COMPANY, BECAUSE ONCE -- I MEAN, WE THOUGHT THIS WAS A GREAT FTC SETTLEMENT IN TERMS OF THE FINDINGS AND ALL THE REQUIREMENTS, BUT THE REQUIREMENTS REALLY DON'T TAKE EFFECT UNTIL MAY, AND SORT OF A SLOWER BLEED, UNLESS THE TOP DISTRIBUTORS LEAVE. AND I THINK WITH CARL THERE, MAYBE THEY HAVE A BETTER CHANCE OF KEEPING TOP DISTRIBUTORS. WITH CARL EXITING, I THINK IT'S OVER AND IT'S OVER QUICKLY. SO OBVIOUSLY THE SOONER HE SELLS, THE BETTER.
ACKMAN ON BEING SMART TO SELL WITH CARL:
CARL'S A GREAT INVESTOR. YOU KNOW, YOU WERE RIGHT TO BUY WITH CARL AT $32 A SHARE WHEN HE BOUGHT THE STOCK AND YOU'RE RIGHT TO SELL WITH CARL WHEN HE SELLS THE STOCK. HE'S PRETTY SAVVY ABOUT IT. HE DOESN'T NORMALLY TELL YOU IN ADVANCE WHEN HE'S OUT. HE WAS VERY BULLISH ON APPLE UNTIL ONE DAY HE FOUND HE SOLD THE WHOLE POSITION.
ACKMAN ON MISTAKES:
OUR PERFORMANCE, THIS IS THE WORST PERIOD OF PERFORMANCE IN MY HISTORY AS AN INVESTOR.(WHITE FLASH) WE MADE ONE VERY BIG MISTAKE, TAKING A PASSIVE POSITION IN VALEANT. WE PAID A FAIRLY FULL PRICE FOR THE ASSETS OF THE COMPANY AND BETTING ON MANAGEMENT'S ABILITY TO CREATE VALUE BY BUYING OTHER ASSETS GOING FORWARD. AND THAT WAS -- WE CAN SPEND AN HOUR OR TWO TALKING ABOUT THE MISTAKES WE MADE THERE.
ACKMAN ON HERBALIFE:
FIRSTLY, HE'S MADE A BUNCH OF MONEY. I THINK HIS AVERAGE COST IS SOMETHING LIKE 32. AND IF HE CAN SELL THIS THING AT 60 BUCKS AND ALMOST DOUBLE HIS MONEY AND -- YOU KNOW, GREAT FOR CARL. HE DOESN'T HAVE TO WORRY ABOUT WHAT HAPPENS TO THE COMPANY WHEN THEY'RE REQUIRED TO COMPLETELY CHANGE THEIR BUSINESS MODEL. LOOK, I THINK HE KNOWS THAT THIS THING IS TOAST.
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