CNBC TRANSCRIPT: ICAHN ENTERPRISES CHAIRMAN CARL ICAHN SPEAKS WITH CNBC’S SCOTT WAPNER ON "FAST MONEY HALFTIME REPORT" TODAY

WHEN: Today, Thursday, March 1, 2018

WHERE: CNBC's "Fast Money Halftime Report"

Following is the unofficial transcript of a CNBC interview with Icahn Enterprises Chairman Carl Icahn and CNBC's Scott Wapner on "Fast Money Halftime Report" today, Thursday, March 1st. Following a link to video of the full interview on CNBC.com: https://www.cnbc.com/video/2018/03/01/full-interview-with-carl-icahn.html?play=1.

All references must be sourced to CNBC.

SCOTT WAPNER: WE WANT TO BRING IN CARL ICAHN WHO HAS JOINED US ONCE AGAIN BY PHONE. CARL, WELCOME, IT'S GREAT TO TALK TO YOU TODAY, THANKS FOR JOINING US.

CARL ICAHN: OKAY, SCOTT, GOOD TO TALK TO YOU.

WAPNER: SO I THINK YOU KNOW WHY WE WANTED TO HAVE YOU ON TODAY, PRINCIPALLY TO TALK ABOUT HERBALIFE AND THE FACT THAT BILL ACKMAN HAS GOTTEN OUT OF THAT. BUT IN LIGHT OF THE NEWS THAT WE'RE DISCUSSING AS YOU JOIN US TODAY ON THESE TARIFFS THAT ARE GOING TO BE INTRODUCED BY THE PRESIDENT NEXT WEEK ON STEEL AND ALUMINUM, DO WE AS INVESTORS NEED TO BE CONCERNED ABOUT A TRADE WAR? ARE YOU TODAY?

ICAHN: NO, I'M NOT THAT CONCERNED ABOUT A TRADE WAR. BUT I AM SOMEWHAT -- AS I'VE SAID BEFORE, SOMEWHAT CONCERNED ABOUT THE OVERALL MARKET. BECAUSE I THINK THERE ARE A LOT OF VARIABLES THAT YOU HAVE TO WORRY ABOUT. BUT I'VE SAID -- YOU KNOW, I THINK -- I THINK THE MARKET IS REALLY A VERY DIFFICULT GAME. SO I STICK TO WHAT I KNOW, YOU KNOW, I STICK TO COMPANIES THAT I FEEL I'M PRETTY KNOWLEDGEABLE ABOUT. AND –

WAPNER: BUT LET ME ASK IT THIS WAY THEN. DO YOU THINK THE MARKETS ARE GOING TO BE REACTING MORE THAN MAYBE THEY HAVE IN THE PAST, DIRECTLY TO SOME OF THE STUFF COMING OUT OF WASHINGTON? WHETHER IT IS TALK OF TRADE WARS, WHETHER IT IS PERCEIVED OR AS SOME HAVE DESCRIBED, CHAOS OUT OF THE WHITE HOUSE. HOW ARE YOU THINKING ABOUT THAT DIRECTLY AS SOMEBODY WHO, LOOK, KNOWS THE PRESIDENT, YOU HAD AN INFORMAL ADVISORY ROLE IN THE PAST, AND I'M JUST WONDERING, WE ARE TALKING ABOUT TODAY THE POSSIBILITY OF A TRADE WAR.

ICAHN: WELL, I – FIRST, I DO KNOW THE PRESIDENT BUT I HAD -- YOU KNOW, I'M BUSY WITH WHAT I'M DOING AND HE'S OBVIOUSLY EXTREMELY BUSY, SO I HAVEN'T HAD MUCH INTERACTION WITH HIM AT ALL IN THE LAST FOUR OR FIVE MONTHS. HOWEVER, BEING THAT SAID, I THINK THE MAJOR THING YOU HAVE TO WORRY ABOUT OR THINK ABOUT IS CREEPING INFLATION, AND THE CORE INFLATION. AND IF YOU HAVE CREEPING INFLATION, I THINK YOU'RE GOING TO HAVE HIGHER INTEREST RATES, WHICH I THINK MIGHT BE DIFFICULT TO DEAL WITH –.

WAPNER: IT'S INTERESTING, PAUL TUDOR JONES WAS GIVING AN INTERVIEW IN THE LAST 24 HOURS TO GOLDMAN SACHS IN WHICH HE SAID ON THE IDEA OF INFLATION, I THINK THE RECENT TAX CUTS AND SPENDING INCREASES ARE SOMETHING WE WILL ALL LOOK BACK ON AND REGRET. WHAT DO YOU MAKE OF THOSE COMMENTS FROM PAUL TUDOR JONES?

ICAHN: I DON'T THINK YOU'RE GOING TO LOOK BACK ON THE TAX CUTS. I THINK THE TAX CUTS, I THINK, ARE POSITIVE. BECAUSE I THINK THE MORE MONEY THAT YOU HAVE OUTSIDE OF THE SPENDING ABILITY OF WASHINGTON IS BETTER. IN OTHER WORDS, I DON'T BELIEVE IN BIG GOVERNMENT, I DON'T BELIEVE IN GOVERNMENT SPENDING. MY WHOLE PHILOSOPHY IS ENTREPRENEURSHIP WHERE YOU HAVE PRIVATE COMPANIES, ALTHOUGH I'M A CRITIC OF MANY PRIVATE COMPANIES, THERE ARE STILL MANY GOOD ONES. SO I AGREE WITH THE TAX CUT. BUT I DO THINK PAUL TUDOR JONES SAID, IF YOU LOOK BACK AND LOOK AT THIS ECONOMY, I THINK THAT A LOT OF THINGS GOING ON, FOR INSTANCE, ON WALL STREET, AND I'VE SAID THIS BEFORE, ARE GOING TO BECOME PROBLEMATIC. I THINK IT WAS ON SEEKING ALPHA OR WHATEVER WE TALKED ABOUT THIS.

WAPNER: YEAH, DELIVERING ALPHA.

ICAHN: DELIVERING ALPHA, WE TALKED ABOUT THIS. AND I REALLY THINK THAT IS GOING TO BE A PROBLEM ONE DAY, WHEN YOU HAVE ALL OF THE – YEAH, WHEN YOU HAVE PEOPLE THAT DON'T UNDERSTAND THE MARKET BUYING ETFs AND BUYING THEM ON MARGINS, BUYING DERIVATIVES. THOSE ARE THE PROBLEMS THAT YOU HAVE TO FOCUS ON. I THINK IT'S VERY DIFFICULT TO SAY IF TOMORROW, NEXT WEEK, NEXT MONTH, EVEN NEXT YEAR, THERE'S GOING TO BE AN ERUPTION. BUT -- SO I GO TO THE SIMPLISTIC BUT OBVIOUS THINGS, WHICH IS, IF YOU HAVE HIGHER INTEREST RATES, THERES GOING TO BE DIFFICULTY FOR A LOT OF -- EVEN A LOT OF INVESTMENT GRADE BONDS COULD HAVE SOME PROBLEMS. SO THIS IS THE PROBLEM I SEE.

WAPNER: IT'S INTERESTING, CARL, I JUST WANT TO LET YOU KNOW WE ARE EXPECTING THE PRESIDENT TO BE MAKING SOME COMMENTS WITHIN THE NEXT MINUTE OR SO IN WHICH WE'LL STEP AWAY FOR THAT BRIEFLY AND THEN COME BACK AND TALK TO YOU. I'M SO CURIOUS TO GET YOUR THOUGHTS, AND WE'LL DO IT ON THE OTHER SIDE OF THE PRESIDENT, ON WHAT YOU THINK OF THE MARKET COMEBACK, RIGHT? YOU WERE WITH US A FEW DAYS BEFORE WE HIT THE BOTTOM AND BOUNCED IN SUCH MAGNITUDE AS WE DID. HERE IS THE PRESIDENT. ON THE OTHER SIDE, WE'LL GET BACK TO OUR CONVERSATION.

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WAPNER: WE'RE BACK WITH CARL ICAHN, CARL, YOU STILL THERE?

ICAHN: YES, I AM.

WAPNER: I APPRECIATE YOUR PATIENCE. THERE'S A LOT I WANT TO GET TO YOU ON STILL. LET'S TACKLE THE HERBALIFE SITUATION. BILL ACKMAN THROWS IN THE TOWEL AFTER THIS FIVE-PLUS-YEAR BATTLE WITH YOU. WHAT WAS YOUR REACTION YESTERDAY WHEN YOU FOUND OUT THE NEWS OF MY REPORT THAT ACKMAN WAS DONE?

ICAHN: YEAH, WELL, I FELT THAT BILL WAS GOING TO GET OUT. I EVEN THOUGHT HE WOULD GET OUT SOONER I THOUGHT HE BASICALLY LOST THE BATTLE, YOU KNOW, A FEW MONTHS AGO. AND BOUGHT THOSE PUTS -- SO I WASN'T THAT SURPRISED. BUT AS I SAY, YOU KNOW, I ENJOY A GOOD FIGHT, ESPECIALLY WHEN I WIN IT. AND I THINK THE HERBALIFE MANAGEMENT DID AN INCREDIBLE JOB THROUGH THIS. IT WAS A MAJOR DISTRACTION FOR HERBALIFE. I THINK HERBALIFE IS A GREAT COMPANY, MAKES A GREAT PRODUCT. I THINK SIMPLISTICALLY, PEOPLE -- I MADE A LOT OF MONEY OVER THE YEARS LOOKING AT THINGS REAL SIMPLY. HERBALIFE BRINGS JOBS TO MANY PEOPLE. THE MODEL BRINGS JOBS, IT MAKES PEOPLE ENTREPRENEURS, WHICH IS GREAT FOR THIS COUNTRY THIS HOW WE BUILT THIS COUNTRY YOU HAVE PEOPLE BASICALLY OUT OF WORK THE OPPOSITE OF WHAT BILL WOULD SAY PEOPLE OUT OF WORK WERE ACTUALLY GIVEN AN OPPORTUNITY TO MAKE MONEY. YOU KNOW, WHEN I WAS 15 YEARS OLD, YOU DIDNT HAVE TO WORRY ABOUT WORKING PAPERS AS MUCH THAT'S GOING BACK A LONG WAY, BUT ONE SUMMER, I LOVED IT THAT WAS A GOOD SALES GUIDE AND I WAS ONE OF THE BEST. THEY TRIED TO TALK ME INTO STAYING AND NOT GOING TO COLLEGE. AND OF COURSE I WAS VERY HAPPY THAT I GOT ACCEPTED TO PRINCETON WHICH WAS VERY SURPRISING TO ME. AND I WENT OFF TO COLLEGE. BUT I REMEMBER THOSE DAYS. I REMEMBER THE THRILL OF HAVING YOUR OWN BUSINESS AND YOU DO THAT IN HERBALIFE AND IT'S UNIQUE IN THAT IT'S HARD TO GET INTO THAT BUSINESS BIG BARRIORS OF ENTRY TO IT. AND I REALLY THINK THAT FOR ME A GROWTH COMPANY, I LOOK AT THAT AS A MAJOR GROWTH COMPANY BECAUSE I THINK IT BRINGS ON A NEW CHANNEL OF GETTING TO THE CONSUMER, YOU KNOW WITH ALL THIS E-COMMERCE PUTTING OUT THE RETAILERS, YOU HAVE THAT. AND THEY BUILT UP, YOU KNOW, A BIG POSITION SO I GUESS I HAVE AN AGENDA BUT IT'S NOT GOING TO HELP ME IF IT GOES UP TWO POINTS OR DOWN TWO POINTS TODAY AS A RESULT OF THIS. YOU KNOW, THE COMPANY, THE COMPANY REALLY IS GREAT AND BILL ACKMAN HAD THE WRONG IDEA ON IT BUT HE PUT UP A HELL OF A GREAT FIGHT. THE GOOD THING HERE IS NOW THERE'S NO FURTHER DISTRACTION AND I HAVE BEEN A CRITIC OF A LOT OF MANAGEMENTS BUT I SAY IT'S VERY GOOD MANAGEMENT. HERBALIFE HAS A VERY GOOD MANAGEMENT TEAM.

WAPNER: YOU MADE WHAT, A BILLION DOLLARS?

ICAHN: WELL, ON PAPER I MADE A BILLION BUT HAVEN'T CASHED IT IN.

WAPNER: THAT LEADS ME TO MY NEXT QUESTION. WILL YOU CASH IT IN?

ICAHN: WELL, YOU KNOW, I JUST TOLD YOU THIS, THAT I DONT DISCUSS POSITIONS, BUT, YOU KNOW WHAT I'M GOING TO DO AND HOW I'M GOING TO TRADE THEM, YOU KNOW, FIRST OF ALL WE HAVE 13dS OUT AND IF I HAD MADE A DECISION LIKE THAT I PROBABLY WOULD HAVE PUT IT TO A 13d BUT I WILL TELL YOU THAT I THINK IT'S A GREAT COMPANY AND IT HAS A GREAT FUTURE AND I HAVE SAID THAT WHEN IT WAS 30, I SAID WHEN IT IS 25 I SAID IT WHEN IT WAS 35. I HONESTLY IN A STRANGE WAY THANK BILL BECAUSE, YOU KNOW, WHEN HE WENT IN AGAINST IT, WHAT ALERTS ME TO STOCKS IS WHEN THEY GO DOWN WHEN THEY'RE IN TROUBLE AND GO DOWN AND THAT ALERTED ME TO IT. SO I THANK HIM FOR THAT BUT HE PUT UP A REAL GOOD FIGHT AND, YOU KNOW, AND I REALLY WISH HIM -- WELL IT'S NOT -- THERE'S NO PERSONAL ANIMOSITY I THINK ON EITHER SIDE IF YOU ASK BILL.

WAPNER: HAVE YOU SPOKEN WITH BILL?

ICAHN: YEAH. I DID. I DID. HE WAS KIND ENOUGH, YOU KNOW, I THOUGHT IT WAS A CLASSY THING. HE CALLED ME UP YESTERDAY AND CONGRATULATED ME.

WAPNER: IS THAT RIGHT?

ICAHN: YEAH.

WAPNER: WHAT WAS THE TENOR OF YOUR CONVERSATION?

ICAHN: JUST IN GENERAL WE JUST TALKED IN GENERAL HE COMPLIMENTED ME ACTUALLY. I COMPLIMENTED HIM. I SAID YOU DID A GOOD FIGHT. I LOVE A GOOD FIGHT AND HE SAID YEAH, YOU KNOW, IT WAS REALLY INTERESTING. YOU KNOW, SORT OF YOUR STRATEGY WAS GREAT AND I SAID THANK YOU FOR SAYING THAT. I THOUGHT IT WAS CLASSY FOR HIM TO DO THAT. THERE'S NOT A PERSONAL THING HERE. I DON'T GET INTO PERSONAL VENDETTAS. I FIND IT NOT PROFITABLE TO DO THAT IT'S ALWAYS GOOD TO, YOU KNOW, INSTEAD OF HAVING AN ENEMY IT'S ALWAYS BETTER TO HAVE A FRIEND.

WAPNER: COULD YOU EVER IMAGINE A DAY WHEN YOU GUYS COULD INVEST TOGETHER?

ICAHN: YEAH, I COULD IMAGINE IT. I HAVE NO PERSONAL ANIMOSITY AGAINST BILL. WHEN YOU GET IN THE HEAT OF A BATTLE YOU SAY THINGS. BUT I WILL SAY, YOU KNOW, HE MADE IT REALLY DIFFICULT AND I WANT TO GET BACK TO THIS HE MADE IT REALLY DIFFICULT FOR THE MANAGEMENT TEAM THERE. THAT'S WHAT HE WAS DOING AND THEY DID A GREAT JOB HE RAN THIS COMPANY GREAT. MICHAEL JOHNSON DID A GREAT JOB IN FIGHTING IT I MEAN IT REALLY TOOK A TOLL ON HIM.JOHN DISIMONE I DIDN'T GET TO MEET MANY OF THE PEOPLE THERE BECAUSE I HAVE PEOPLE ON THE BOARD. I'M NOT ON THE BOARD MYSELF BUT I DID MEET THEM ALL AND HAVE DINNER WITH THEM A FEW TIMES THEY ALL WERE REALLY GREAT IN WHAT THEY DID. I'M REALLY -- I CAN'T SAY SURPRISED BUT I REALLY RESPECT HOW THEY CONTINUE TO BUILD THAT COMPANY UP IN THE FACE OF THIS ADVERSITY AND IM A MAJOR CRITIC OF A LOT OF COMPANIES, MANAGEMENT THAT'S WHAT I DO I BUY COMPANIES WHEN THERE IS BAD MANAGEMENT. THIS WAS A BIT OF AN EXCEPTION BUT THERE ARE GREAT MANAGEMENTS AROUND AND THIS COMPANY HAS WHAT I CONSIDER TO BE AN A-RATED MANAGEMENT TEAM.

WAPNER: YOU LIKE TO SAY THROUGHOUT THIS FIVE YEAR SAGA WHEN PEOPLE SORT OF QUESTIONED HOW LONG YOUR STAYING POWER WAS GOING TO BE THAT YOU HAVEN'T SOLD A SINGLE SHARE, I KNOW YOU JUST SAID OBVIOUSLY THERE HASNT BEEN A 13 D-FILE THERE'S BEEN NO FILING IS THAT STILL THE CASE HAVE YOU NOT SOLD A SINGLE SHARE –

ICAHN: SCOTT, I HAVE NOT SOLD ONE SINGLE SHARE OF HERBALIFE. I HAVE BEEN BUYING IT AND BUYING IT WE HAVE I THINK 26% OF THE COMPANY. I HAVE NOT SOLD ONE SHARE OF IT. I THINK HERBALIFE MIGHT EVEN HAVE A SMALL SECULAR CHANGE IN THE WAY YOURE GOING TO HAVE RETAILING. THEY REALLY -- THEY HAVE GREAT BARRIERS OF ENTRANCE IN A STRANGE WAY, THE FTC MIGHT HAVE EVEN HELPED THEM IN BUILDING THOSE BARRIERS BECAUSE AT THE FTC HAS PUT ON CERTAIN RESTRICTIONS ON JUST HOW YOU HAVE TO REPORT I'M NOT GOING TO GET INTO THE NITTY-GRITTY OF IT. HOW YOU REPORT THIS WHOLE NETWORK AND HOW YOU GOT THE SHOW THAT THERE REALLY IS A NETWORK AND THEY'RE REALLY IS BUYING PRODUCT AND THEY BUILT UP A GREAT SYSTEM TO SHOW HOW YOU CAN DO THAT AND THAT'S GOING TO MAKE IT DIFFICULT FOR OTHER COMPANIES TO ENTER. THERE'S ALSO BARRIERS OF ENTRANCE BECAUSE THEY HAVE REALLY GOOD PRODUCTS THAT THEY DEVELOPED OVER THE YEARS AND AS A RESULT I'M QUITE BULLISH ON -- I'M BULLISH ON THE COMPANY BUT, YOU KNOW SOMETHING, I DONT GO OUT AND SAY WHAT I'M GOING TO DO WITH MY STOCKS. THAT WOULD BE COUNTER PRODUCTIVE FOR WHAT I DO.

WAPNER: I UNDERSTAND. I THINK TELLING US THAT YOU HAVENT SOLD A SINGLE SHARE STILL HELPS PEOPLE UNDERSTAND WHERE YOUR FRAME OF MIND IS TODAY. LET'S SWITCH GEARS. YOU ANNOUNCED GOOD EARNINGS BY THE WAY FOR IEP. YOUR STOCK WAS UP 4% AND YOU REALLY IN YOUR FILING, I DON'T KNOW, DOUBLE DOWN ON THE ACTIVIST MODEL CONTINUING TO WORK AND I WANT TO TALK TO YOU ABOUT WHAT THE MARKET THINKS IS YOUR NEW ACTIVIST TARGET AND THAT IS NEWELL. HOW BIG IS YOUR POSITION IN NEWELL AND WHAT ARE YOUR INTENTIONS?

ICAHN: WELL, AGAIN, I DON'T TALK ABOUT MY POSITIONS I WILL TELL YOU THAT I DO HAVE A LARGE POSITION IN NEWELL I DON'T DENY IT. I'M LOOKING AT THE DIFFERENT VIEWS BETWEEN THE MANAGEMENT TEAM AND BETWEEN THE ACTIVIST INVESTORS.

WAPNER: STARBOARD, RIGHT? AND MARTIN FRANKLIN IS IN THERE TOO, TOGETHER.

ICAHN: YEAH.

WAPNER: RIGHT.

ICAHN: AND THEY HAVE REALLY BASICALLY DIFFERENT VIEWS ON WHERE THIS COMPANY SHOULD GO I BELIEVE NEWELL ITSELF IS UNDERVALUED AND THAT'S WHY I BOUGHT IT. YOU KNOW, THE STOCK WENT DOWN FROM 55 TO 25 OR SOMETHING WHEN WE GOT INTO IT AND I DO THINK THAT THERE'S POTENTIAL BECAUSE THESE BRANDS ARE ANOTHER AREA IN THE RETAIL BUSINESS THAT I THINK WILL STILL SURVIVE AND, IN FACT, GET EVEN MORE PROFITABLE SO I CAN'T GIVE MORE THAN THAT ABOUT IT. I REALLY HAVE NOT DETERMINEDWHICH WAY I'M GOING TO GO IN IT. I DO HAVE A LARGE POSITION BUT OBVIOUSLY –

WAPNER: CAN WE SAY IT'S NOT YET 5% OBVIOUSLY?

ICAHN: THAT'S RIGHT BUT 5% IS A LOT IN THAT COMPANY, OBVIOUSLY, IT'S A BIG COMPANY. BUT I THINK I HAVE ONE OF THE LARGER POSITIONS. A FEW INSTITUTIONS HAVE MORE AND THEY'RE GOING TO BE INSTRUMENTAL IN DECIDING WHO WINS IT. I MIGHT HAVE SOMETHING TO SAY ABOUT THAT

WAPNER: DOES IT MAKE A DIFFERENCE TO YOU THAT STARBOARD AND MR. FRANKLIN ARE ALREADY WAGING A PROXY FIGHT AGAINST THE COMPANY? THEY WANT THE WHOLE BOARD OUT. THEY WANT THE CEO OUT AND MAYBE PRE-STAGED ANYTHING UP YOUR SLEEVE. HOW DOES THAT EFFECT THE WAY YOU THINK ABOUT WHAT MAY HAPPEN?

ICAHN: WELL, I MEAN, I DON'T QUITE UNDERSTAND THE QUESTION.

WAPNER: WELL, LOOK, THEY CAME OUT PUBLIC WITH A PROXY FIGHT ALREADY. I'M WONDERING HOW THAT INFLUENCES HOW YOU THINK ABOUT WHAT YOU MIGHT DO NEXT. RIGHT, NORMALLY WE WOULD EXPECT TO SEE YOU LEAD THE CHARGE PERHAPS ON A PROXY FIGHT BUT NOW THAT YOU HAVE ANOTHER ACTIVIST ALREADY RATTLING THE CAGE—

ICAHN: I'LL TELL YOU THIS MUCH, WHICH IS NOT KNOWN. THE – I WAS CONSIDERING, YOU KNOW, TALKING TO THE COMPANY AND POSSIBLY PUTTING UP A SLATE, DETERMINED BY WHETHER OR NOT I FEEL THAT THE COMPANY IS GOING THE RIGHT DIRECTION. OBVIOUSLY THE COMPANY WENT WAY DOWN AND THE BAD GUIDANCE – THE GUIDANCE WAS NEGATIVE AND I WAS THINKING ABOUT THAT BUT THEN I REALIZED THAT THE NIGHT BEFORE THE SLATE WAS DUE, YOU KNOW, I REALIZED THAT THERE WAS GOING TO BE ANOTHER SLATE AND I FIGURED, YOU KNOW, MARTIN FRANKLIN IS A WELL-KNOWN GUY IN THIS BUSINESS AND HE HAD THE BACKING OF JEFF SMITH WHO IS A REAL SMART GUY AND I SAW THAT AND THEN, YOU KNOW, I DO THINK THAT THE MANAGEMENT TEAM HAVE FOLLOWERS ALSO AND I SAID WHAT THE HECK AM I DOING HERE? YOU KNOW, I'M GOING TO BE THE THIRD HORSE IN A THREE HORSE RACE. I JUST DECIDED WHY SHOULD I GET INTO IT? I WAS ONLY GOING TO GET INTO IT IF I FELT THAT -- YOU KNOW, I MIGHT HAVE GOT INTO IT AND NOT GOT INTO IT DETERMINED BY WHAT I THOUGHT THE MANAGEMENT WAS GOING TO DO. BUT I TELL YOU THIS, AND I HAVE TALKED TO MIKE POLK A BIT AND HE HAS SOME, I THINK VERY INTERESTING VIEWS ABOUT THE FUTURE OF THE COMPANY AND HE BASICALLY IS A CAPABLE GUY, I THINK. SO I THINK IT'S GOING TO BE A TIGHT RACE AND I THINK I HAVE TO DECIDE WHICH WAY I'M GOING TO GO BUT I DO THINK THE COMPANY IS UNDERVALUED. PUT IT THAT WAY. OBVIOUSLY.

WAPNER: WE'LL CERTAINLY PAY ATTENTION TO IT. I WANT TO WRAP THINGS UP WE'VE BLED INTO THE NEXT HOUR AND THEY'RE GRACIOUS ENOUGH TO HAVE US DO THAT. LET ME WRAP IT UP THIS WAY, CARL. THE DOW IS NOW DOWN 270 POINTS. AND MAYBE SOME OF THAT HAS TO DO WITH WORRIES OF TRADE WAR AMONG WITH A WHOLE HOST OF OTHER ISSUES. AS I SAID AT THE TOP OF THE INTERVIEW, YOU WERE WITH US A FEW DAYS BEFORE THE MARKET BOTTOMED AND THEN BOUNCED. DO YOU THINK WE'RE GOING TO GO BACK AND RETEST THE LOWS NOW AND WHAT DO YOU MAKE OF THE SPEED AT WHICH STOCKS WERE ABLE TO COME BACK?

ICAHN: YEAH, NO, IT'S VERY INTERESTING. IT'S FASCINATING THAT THAT HAPPENED. AGAIN, I STUDY THE MARKET A LOT OBVIOUSLY BECAUSE WE HAVE THESE HUGE POSITIONS. I WOULD TELL YOU THAT I DO NOT REALLY THINK AND ESPECIALLY AT THIS TIME – AND I DON'T SAY THIS FACETIOUSLY – THAT ANYBODY REALLY KNOWS WHICH WAY THIS MARKET IS GOING TO GO ON A SHORT-TERM BASIS. I REALLY THINK THERE'S TOO MANY VARIABLES. THERE'S TOO MANY THINGS THAT COULD HAPPEN EITHER WAY AT THIS MOMENT. AND SO YOU SORT OF HAVE A – YOU HAVE TO HAVE A HEDGE POSITION, I MEAN, FOR SOMEBODY THAT'S GOT A MAJOR POSITION. BUT TO COME OUT AND SAY -- I'M SORT OF AMAZED, I'M AMAZED AT SOME OF THESE GUYS THAT I LISTEN TO ARE SO DEFINITE, YOU KNOW, IT'S GOING TO GO UP OR IT'S GOING TO GO DOWN. THEY'RE SO DAMN DEFINITE. AND, IT REMINDS ME, I THINK IT WAS AT IT WAS DISREALI WHO SAID IT ONE TIME IN PARLIAMENT, WHERE THERE WAS A YOUNG GUY THERE WHO IN PARLIAMENT OR SOMETHING KEPT TALKING ABOUT ONE THING AND ANOTHER THING AND ANOTHER THING. AND DISRAELI SAID, "YOU KNOW YOUNG MAN," YOU KNOW – IT WAS SOME LORD HE WAS TALKING TO, "YOU KNOW YOUNG MAN, I WOULD BE SO HAPPY IN MY LIFE, SO HAPPY IF I COULD BE SURE OF ONE THING AS YOU ARE SURE OF EVERYTHING." AND THAT'S WHAT I THINK OF WHEN YOU LISTEN TO THESE GUYS TELL YOU WHAT THE MARKET'S GONNA DO. BECAUSE I REALLY DO NOT BELIEVE THAT THERE'S ANYONE CAN PREDICT ON A SHORT-TERM BASIS, GENERALLY, WHAT THE MARKET CAN DO BUT PARTICULARLY NOW. I DO THINK THAT THE MODEL, THE ACTIVIST MODEL IS STILL ONE OF THE BEST MODELS THERE IS. WE'VE PRACTICED IT FOR 18 YEARS AND YOU CAN SEE, I'M PROUD TO SAY THAT OUR ANNUALIZED RETURN, IF YOU BOUGHT OUT A STOCK IEP, 18 YEARS AGO WHEN WE GOT INTO THIS ACTIVISM THING – I DID IT BEFORE THE 18 YEARS AGO BUT YOU KNOW, IN IEP, YOU MADE A RETURN OF 15% ANNUALIZED. YOU HAD SOME UP YEARS, AND SOME BAD YEARS, BUT BASICALLY YOU JUST KEPT IT, YOU MADE 15% ANNUALIZED, IF YOU INVEST IN THE DIVIDENDS YOU GOT AND IF YOU COMPARE IT TO THE S&P, AT THAT TIME, WHICH YOU THINK THE S&P IS GOOD AND IT IS GOOD, YOU ONLY MADE 5%. SO THAT MODEL WORKS. BUT A MODEL, I HAVEN'T REALLY SEEN ANYONE THAT MAKES MONEY CONSISTENTLY TELLING YOU, OH, I'M GOING TO BUY STOCK NOW AND I'M GOING TO TRADE IT AND I'M GOING TO SELL IT AND I'M GOING TO BUY IT. I JUST DON'T THINK – THERE ARE JUST TOO MANY VARIABLES TO THE HUMAN MIND THAT EVEN THESE COMPUTERS TO TELL YOU WITH ANY REAL CERTAINTY WHAT IS GOING TO HAPPEN IN THE NEXT WEEK OR MONTH. I THINK THERE IS CERTAINLY, AS I SAID, IF YOU LOOK AT IT OVER A PERIOD OF THE NEXT TWO YEARS, YOU HAVE TO BE COGNIZANT THAT THERE ARE DANGERS THERE. AND I SAID TWO OR THREE YEARS AGO, BUT YOU NEVERGOING TO KNOW WHEN IT HITS. YOU JUST NEVER KNOW. BUT TO PREDICT THAT I GO BACK TO THE MODEL I KNOW BEST WHICH IS ACTIVISM. I THINK MANY COMPANIES IN THIS COUNTRY. LOOK, I JUST LISTENED TO DONALD TRUMP AND I RESPECT WHAT HE SAYS. AND I CERTAINLY RESPECT WILBUR ROSS. AND ALL OF THAT. BUT, YOU KNOW, ONE OF THE PROBLEMS WITH OUR COMPANIES, OUR PRODUCTIVITY, I KEEP SAYING, IN MANY SECTORS, IN MANY COMPANIES IS POOR MANAGEMENT AND POOR BOARDS. AND THE BOARDS DON'T HOLD COMPANIES ACCOUNTABLE. AND THE DIFFERENCE REALLY IS AS I HAVE SHOWN IT, OVER THE 18 YEARS, WE TAKE COMPANIES, WE NURTURE THEM, WE WORK WITH THEM. IF THE CEO IS GREAT, WE LOVE THEM. LOOK, THE CEO'S AT HLF, THE MANAGEMENT, I LIKE THEM. A GREAT DEAL. BUT THEY'RE NOT PRODUCING, YOU MAKE THEM ACCOUNTABLE AND THAT'S WHAT LIFE SHOULD BE AND THAT'S WHAT IT IS IN A PRIVATE COMPANY. AND THEREFORE, THAT MODEL, I BELIEVE, IT WORKS. AND I SAY OVER YEARS, IF YOU DO THAT MODEL YOU'LL MAKE MONEY BUT IF YOU START PREDICTING THE MARKET, IT'S LIKE GOING TO VEGAS WITH YA AND TELLING YOU OUGHT TO PAY ME BECAUSE THE FARMER'S WIFE JUST SHOT FIVE SEVENS AND I'LL TELL YOU WHAT SHE'S GOING TO DO. AND YOU LAUGH AT ME, I'M NOT GOING TO PAY YOU TO TELL ME WHAT DICE SHE'S GOING TO THROW. AND IT'S VERY CLOSE TO THAT IN THE MARKET. I MEAN, OBVIOUSLY YOU STUDY IT, I READ ABOUT IT, SO MAYBE I HAVE A BIT OF AN EDGE IN PREDICTING THE MARKET BUT NOT ENOUGH OF AN EDGE.

WAPNER: DO YOU EVER TAKE A LOOK AT STEEL OR ALUMINUM STOCKS? THOSE SORT OF INDUSTRIAL STOCKS?

ICAHN: I DO. I'VE LOOK AT THEM. IN FACT, MANY YEARS AGO WE HAD A LARGE POSITION OR ACTIVIST IN U.S. STEEL. WAY BACK. THAT GOES WAY BACK TO THE '80s. YEAH, I MEAN, WE LOOK AT IT. I'M NOT GOING TO CRITICIZE U.S. STEEL. I DON'T KNOW ENOUGH ABOUT IT. AND I DO THINK, LOOK, I THINK DONALD TRUMP HAS DONE SOME REAL GOOD THINGS, AND SOME THINGS I MAYBE DISAGREE WITH HIM ON, BUT HE'S DONE SOME REAL GOOD THINGS. AND THIS WHOLE BUSINESS WITH THE TARIFFS AND SAYING, WE'RE GOTTASAVE THESE COMPANIES, I THINK THERE IS SOME REAL TRUTH OF THAT. ON THE OTHER HAND, I THINK WITH ALL COMPANIES, A LOT OF COMPANIES IN THIS COUNTRY, YOU SHOULD LOOK AT, YOU SHOULD LOOK AT THE MANAGEMENT. AND SOME ARE GREAT MANAGEMENTS AND SOME ARE POOR MANAGEMENTS, BUT THAT'S SOMETHING THAT WE SHOULD BE REALLY DOING MORE ABOUT. THAT ACCOUNTABILITY.

WAPNER: WELL, THE MANAGEMENT CERTAINLY IN THAT ROOM WITH THE PRESIDENT, CARL. I'M SURE YOU HEARD THEM AS WELL, WHETHER IT WAS THE CEO OF U.S. STEEL OR THE OTHERS.

ICAHN: YEAH I'M NOT CRITICIZING U.S. STEEL. DON'T GET ME WRONG.

WAPNER: NO, AND I GOT YOU, BUT THERE'S CERTAINLY—

ICAHN: AND I'M NOT CRITICIZING CATERPILLAR. I DON'T REALLY – I KNOW THE COMPANIES I KNOW. BUT, YEAH, AND I SEE YOUR POINT. BUT OF COURSE, THAT'S THE WHOLE POINT ABOUT THE MARKETS TOO. THERE'S A DELICATE BALANCE, RIGHT? BECAUSE, IF YOU DO TOO MUCH TO HURT THESE EMERGING MARKETS, YOU KNOW, THAT'S GOING TO HURT US TOO. SO THERE'S A REAL DELICATE BALANCE. BEING THAT BEING SAID, I THINK THERE IS SOMETHING A LOT TO WHAT THEY'RE SAYING ABOUT FAIR TRADE BEING FAIR AND HAVING – THAT YOU CAN'T, IF YOU SUBSIDIZE – IF THE COUNTRY IS SUBSIDIZING THE STEEL MAKER, IT'S OBVIOUSLY UNFAIR. YOU KNOW SO I THINK THERE'S SOMETHING TO THAT BUT I'M NO EXPERT ON THAT.

WAPNER: CARL, WE'RE GOING TO THROW THE BALL OVER TO OUR FRIENDS AT "POWER LUNCH." THE DOW AS WE SPEAK IS SELLING OFF. IT'S DOWN MORE THAN 330 POINTS. THANK YOU FOR BEING ON TODAY FOR REALLY A DISCUSSION ON A WIDE NUMBER OF TOPICS. YOUR OWN EARNINGS TODAY, YOUR STOCK IS UP. HERBALIFE, WE OBVIOUSLY KNOW THE NEWS THERE, YOUR VICTORY OVER BILL ACKMAN AFTER FIVE PLUS YEARS. THANK YOU FOR YOUR TIME TODAY.

ICAHN: OK. THANK YOU FOR TALKING TO ME. SCOTT. WE'LL TALK AGAIN.

For more information contact:

Jennifer Dauble
CNBC
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e: jennifer.dauble@nbcuni.com

Emma Martin
CNBC
t: 201.735.4713
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e: emma.martin@nbcuni.com

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With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, and CNBC World, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to more than 409 million homes worldwide, including more than 91 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.

CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms including: CNBC.com; CNBC PRO, the premium, integrated desktop/mobile service that provides live access to CNBC programming, exclusive video content and global market data and analysis; a suite of CNBC mobile products including the CNBC Apps for iOS, Android and Windows devices; and additional products such as the CNBC App for the Apple Watch and Apple TV.

Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc.

For more information about NBCUniversal, please visit http://www.NBCUniversal.com.