Herbalife to Add Two Icahn Representatives to Board
Herbalife announced on Thursday that it has agreed to increase the size of its board to add two representatives of activist investor Carl Icahn.
Icahn's company and related entities collectively own 13.6 percent of the company's shares; they have the right to boost their position in the company to up to 25 percent of Herbalife's common stock.
Before the announcement, Herbalife stock was halted pending news. Once shares resumed trading, they were trading higher on Thursday. (Click here for the latest quote for the company's shares.)
The move gives Icahn greater input into Herbalife's operations. Fellow activist investor, Bill Ackman has been highly vocal about his opinion that "Herbalife is a pyramid scheme." Ackman, who has made a $1 billion short bet against the nutritional supplements company, said his conclusions about Herbalife are "unaffected by who is on the other side of the investment."
(Read more: Ackman: Herbalife Short Unaffected by Icahn Stake)
The board will expand from nine to 11 members immediatlely ahead of the company's annual shareholder meeting this year.
Last month, Icahn and Ackman captivated CNBC viewers a heated call-in interview over Herbalife stock that was chock full of allegations and insults.
(Read more: Ackman, Icahn Hurl Accusations, Insults)
