Share “Icahn to get 3 more seats on Herbalife board”

Icahn to get 3 more seats on Herbalife board

Published on NewsOK Modified: March 24, 2014 at 6:43 am •  Published: March 24, 2014

LOS ANGELES (AP) — Herbalife said Monday that it is nominating three people backed by activist investor Carl Icahn to its board.

If elected, the latest nominees would bring the number of Icahn-supported people on Herbalife's board to five. There are already two currently on the board. Icahn owns about 16.8 percent of Herbalife Ltd.'s common stock.

Herbalife, which makes supplements and weight-loss products, says it plans to keep the size of the board at 13.

The company has been under attack by hedge fund manager Bill Ackman, who has a $1 billion short position in Herbalife's stock that puts him in position to profit from a drop in the company's stock. Ackman says that Herbalife is operating as a pyramid scheme, implying the company makes most of its money by recruiting new sales people rather than from selling its products.

Herbalife has repeatedly denied the claims but earlier this month the company said that it is being investigated by the Federal Trade Commission for possible deceptive practices.

Icahn has sided with Herbalife, taking his battle against Ackman public and increasing his stake in the company.

Less than two weeks ago, Herbalife agreed to push back the date of its annual shareholder meeting by five days so it could continue talks with Icahn about adding his nominees to its board.

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