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

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...