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Icahn to get three more seats on Herbalife board

Nutrition and weight-loss company Herbalife said it would allow three more representatives of billionaire investor Carl Icahn to join its board, sending the company's shares up as much as 9 percent before the bell on Monday.

As part of an amended agreement with Icahn, Herbalife said Hunter Gary, Jesse Lynn, and James Nelson would be put up for election, giving Icahn five seats on the 13-member board.

(Read more: Icahn: Ackman's Herbalife attack borders on insane)

Patrick Fallon | Bloomberg | Getty Images

Herbalife, whose business practices are being investigated by the Federal Trade Commission, earlier postponed its annual shareholders' meeting to April 29 from April 24 in order to continue talks with Icahn about an increase in board representation.

Icahn, Herbalife's biggest shareholder with a 16.8 percent stake, has been supporting the company in its fight against fellow billionaire investor William Ackman.

Ackman, who heads Pershing Square Capital Management, has called Herbalife's distribution model a "pyramid scheme" and has run up huge losses since taking out a short position of about $1.16 billion on Herbalife's shares.

"We remain resolute in our commitment to the long term success of Herbalife," Icahn said in a statement.

Icahn continues to have the right to buy up to 25 percent of Herbalife, the statement said.

(Read more: Carl Icahn criticizes eBay—again)

Herbalife said Carole Black, Michael Levitt and Colombe Nicholas would step down from the board.

Herbalife shares were up 8.5 percent at $53.75 in premarket trading. (Click here for the latest quote.)

By Reuters

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