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CNBC Billionaire Showdown: Carl Icahn vs. Bill Ackman

Bill Ackman and Carl Icahn square-off live and insult each other on CNBC's "Fast Money Halftime" over a past deal gone bad and disagreements about current investments in Herbalife. This is the complete, unedited conversation. (27:39)

WAPNER: WELCOME BACK TO THE HALFTIME REPORT LIVE TODAY FROM THE NYSE WE’VE BEEN SPEAKING WITH HEDGE FUND INVESTOR BILL ACKMAN NOW IT’S TIME TO HEAR WHAT CARL ICAHN HAS TO THINKS OF OUR CONVERSATION. HE JOINS US LIVE ON THE PHONE. GENTLEMEN LET ME MAKE SURE I HAVE BOTH OF YOU THERE FOR TECHNICAL PURPOSES. CARL ARE YOU THERE? BILL ARE YOU THERE?

ICAHN: I AM HERE.

ACKMAN: I AM HERE AS WELL.

WAPNER: CARL WE HAVE BEEN SPEAKING WITH BILL FOR THE LAST SEVERAL MINUTES FOLLOWING THE ACCUSATIONS YOU MADE YESTERDAY AND HE’S ESSENTIALLY SAYING THAT YOU’RE A HYPOCRITE CARL IN YOUR ARGUMENT. THAT YOU’VE LAID OUT SHORT POSITIONS YOURSELF PUBLICLY HOW DO YOU RESPOND?

ICAHN: WELL YOU KNOW LISTEN I REALLY SORT OF HAD IT WITH THIS GUY ACKMAN. YOU KNOW WHY DON’T WE GO BACK OVER A LITTLE HISTORY WITH HIM. I’M NOT GOING TO GET INTO TALKING ABOUT SHORT POSITIONS AS MUCH AS MAYBE YOU WOULD LIKE ME TO BUT HEY LET’S START OUT WITH MY HISTORY WITH THIS GUY. MINDING MY OWN BUSINESS AND IN 2003 I GET A CALL FROM THIS ACKMAN GUY AND I’M TELLING YOU HE IS LIKE THE CRY BABY IN THE SCHOOL YARD. I WENT TO A TOUGH SCHOOL IN QUEENS THEY USED TO BEAT UP THE LITTLE JEWISH BOYS. HE WAS LIKE ONE OF THESE LITTLE JEWISH BOYS CRYING THAT THE WORLD WAS TAKING ADVANTAGE OF HIM. HE WAS ALMOST SOBBING AND HE'S IN MY OFFICE TALKING ABOUT HOW I COULD HELP HIM AND IT WAS LIKE IN THE OLD SONG, YOU WILL RUE THE DAY I EVER MET THE GUY. HE'S THERE TALKING ABOUT THE COMPANY. I ACTUALLY CALLED A FRIEND WHO KNEW HIM WHO SAID, DON'T DEAL WITH THE GUY. HE'S IN MAJOR MAJOR TROUBLE. YOU KNOW, I WILL JUST READ TO YOU SOME OF THE STUFF THEY WERE SAYING ABOUT HIM THEN. YOU KNOW, THIS WAS AN ARTICLE IN THE NEW YORK TIMES. THESE GUYS RECEIVED REQUEST FOR INVESTMENTS, ASKING FOR THEIR MONEY BACK. THEY HAD SUFFERED A DEVASTATING SETBACK. THEN, YOU KNOW, DOES THIS REMIND YOU OF ANYTHING? THIS ARTICLE SAYS GOTHAMS PUBLICATIONS OF UPBEAT RESEARCH ABOUT ONE COMPANY EVEN AS THE FUND WAS QUIETLY SELLING ITS SHARES, LOOKED VERY MUCH LIKE A CLASSIC PUMP AND DUMP SCHEME. THEN IT GOES ON TO SAY ELIOT SPITZER NY STATE ATTORNEY GENERAL HAD BEEN INVESTIGATING GOTHAM ITS PRINCIPLES AND ACTIVITIES. IT GOES ON TO SAY THIS S.E.C. IS LOOKING INTO THEM. YOU KNOW, I REALLY HAVE TO ADMIT I DIDN'T READ THIS AND I GOT INVOLVED WITH THIS ACKMAN GUY AND IT COST ME MONEY.

WAPNER: WELL, BECAUSE IT COST YOU MONEY CARL BECAUSE A COURT SAID YOU RENEGED ON THE AGREEMENT YOU GUYS HAD AND A COURT REPEATEDLY SAID THAT.

ICAHN: LET ME SAY ONE THING. I WILL TELL YOU I HAVE DONE STUFF THROUGH THE '70s AND '80s ON A HANDSHAKE. I WILL TELL YOU CATEGORICALLY ACKMAN KNEW HE WASN'T GOING TO GET HALF THE PROFITS. THIS GUY WAS IN SUCH TROUBLE HE WAS IN NO POSITION TO ASK FOR ANYTHING. AT THE VERY END OF THE DEAL BEFORE WE SIGNED HE SAID, YOU HAVE TO DO ME A FAVOR AND SIGN SCHMUCK INSURANCE SO IF YOU FLIP THE STOCK THEN I GET HALF THE PROFITS. I SAID, HEY, BILL, I'M NOT GOING TO FLIP THE STOCK. I'M GOING TO MAKE A TENDER OFFER FOR IT. AND I DID. AND I SAID, AND THE COMPANY WILL FIND ANOTHER BUYER OR I WILL BUY IT SO YOU WON'T GET PROFITS. HE SAID, I REALIZE THAT. I JUST HAVE TO SHOW MY INVESTORS -- AND HE HAD ONLY ONE OR TWO LEFT MAYBE BY THAT TIME. GOD KNOWS WHAT HE HAD LEFT. HE SAID I HAVE TO SHOW MY INVESTORS I'M MAKING MONEY. ALL THAT CRAP. AND AT THE END WE WROTE IT AND MY LAWYER IS A GREAT LAWYER HE’S WITH ME 20 YEARS. HE'S STILL WITH ME. WE WROTE IT AND WE STILL THINK WHAT WE SAID IS RIGHT. BUT ACKMAN GOT A NEW YORK COURT TO AGREE THE FACT THAT THEY TOOK IT AWAY FROM US, WE NEVER SOLD IT. THEY TOOK THE STOCK AWAY. WE VOTED AGAINST THE DEAL AND THEY TOOK IT AWAY -- I WAS AMAZED WHAT ACKMAN CALLED ME I REALLY WAS EVEN THOUGH BY THAT TIME I REALIZED HE'S THE QUINTESSENTIAL EXAMPLE ON WALL STREET IF YOU WANT A FRIEND GET A DOG BECAUSE THAT’S WHAT THIS IS ALL ABOUT.

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