Icahn Gets Three More Herbalife Board Seats

Mar 24 2014 | 1:28pm ET

Nutritional supplements company Herbalife has agreed to add three more representatives of Carl Icahn to his board, giving an investor owning 16.8% of the company a nearly 40% share of its directors.

Herbalife said that three of its current directors would step down at the April 29 annual meeting—which was delayed five days as the company negotiated with Icahn. In their place, two Icahn employees and an independent director of Icahn Enterprises will take their place, joining two other Icahn representatives who’ve sat on the 13-member board for about a year.

“We remain resolute in our commitment to the long-term success of Herbalife,” Icahn said today.

Herbalife said that Icahn retains the right to increase his stake in the company to 25%.

Icahn began investing in Herbalife after his nemesis, Pershing Square Capital Management’s William Ackman, opened a $1 billion short bet against the company, calling it a pyramid scheme. The company’s shares have soared since Icahn announced his initial stake, although word of a regulatory investigation earlier this month sent the shares down.


In Depth

Electronifie: Better Bond Trading

May 11 2016 | 3:03pm ET

Technology has revolutionized countless aspects of investing and trading, but the...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...