Herbalife Ltd. (NYSE:HLF) is not willing to commit to buyback until its re-audit gets completed, nor is it willing to leverage up to fund a buyback, believe Barclays analysts.
Meredith Adler and Sean Kras of Barclays equity research suggest that Herbalife management needs to look at the economics of a buyback before committing to anything.
Herbalife’s re-audit
A fresh audit from PricewaterhouseCoopers was initiated in May after KPMG indicated in April that its independence had been eroded and hence withdrew its audit reports for 2010, 2011 and 2012.
Pershing Square founder Bill Ackman...
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