Icahn Rakes in $500 Million as Soros Reportedly Joins Herbalife

LOS ANGELESBillionaire investor Carl Icahn recently disclosed that his 16.5-percent interest in the nutritional supplements company Herbalife is paying off.

In a phone interview last week with anchor Liz Clayman of the Fox Business Network, the 77-year-old businessman confirmed the investment has yielded $500 million.

"Yes, we have made $500 million," he said. 

Icahn touted Herbalife in the wake of reports that fellow billionaire George Soros has taken a position in the company. Sources last month told CNBC that Soros' position in the company is one of his top three investment holdings. A spokesman for Soros Fund Management didn't immediately respond Tuesday to a request for comment on the news reports.

Herbalife announced in late February that Icahn acquired a 13.6-percent stake in Herbalife's outstanding shares. His stake reportedly has increased to 16.5 percent, and two individuals affiliated with Icahn, Keith Cozza and Jonathan Christodoro, now serve on Herbalife's board of directors.

Shares of Herbalife have soared year to date, reversing a downward trend that was caused by allegations from another wealthy investorWilliam Ackman of Pershing Square Capital Managementthat Herbalife operates an unsustainable pyramid scheme. The price of the stock opened today at $66.27, close to a 52-week high ($68.00) that was reached on Aug. 6.

Ackman has bet against Herbalife in a move that would enrich him if the stock price declines. He is said to have accused other investors of colluding to manipulate the market, and sources have told Fox Business Network that the Securities and Exchange Commission (SEC) is looking into the allegations.

Its an absurdity to listen to Ackman say these people are ganging up when he fills a room with 300 people and he badmouths Herbalife over and over again, and he still does," Icahn told Fox's Clayman.

Icahn was referring to a 334-page presentation last year in New York where Ackman laid out his arguments that Herbalife operates a business that is destined to collapse.   

The two men dislike each other, as was evident earlier this year when CNBC had them both on the phone.  ("I'm telling you he's like the crybaby of the schoolyard," Icahn said, referring to Ackman; Ackman countered that "Carl Icahn unfortunately does not have a good reputation for being a handshake guy"). 

Earlier this year, Herbalife acknowledged the SEC has requested information on its business and financial operations after it asked for a meeting with the agency's staff. But Herbalife has vigorously denied that its business model is unlawful or illegitimate.  

Still, some groups have asked the FTC to investigate the 33-year-old company, which relies on an independent network of distributors to sell its nutrition, weight-management and personal care products throughout the world.