Shares of Herbalife Respond to Nomination of Three Icahn Designees

Herbalife HLF on Monday announced a reinstatement of its agreement with Carl Icahn and related entities, which own approximately 16.8 percent or 17 million shares of the company's common stock. Shares are up more than 7.25 percent in pre-market trading following Herbalife's nomination of three Icahn designees for the Board of Directors including Hunter Gary, Jesse Lynn and James Nelson.

$HLF added 3addt. Icahn designees,totaling5 on their board. We thank them for this share of confidence. HLF release http://t.co/1wEvATsrHE

— Carl Icahn (@Carl_C_Icahn) March 24, 2014

The company's 2014 Annual General Meeting of Shareholders is currently scheduled for April 29, 2014. The press release states that Icahn Enterprises L.P. employees Hunter Gary and Jesse Lynn are nominated for Class 1 directorships currently held by Carole Black and Michael Levitt. James Nelson will be nominated to serve the remainder of the board's Columbe Nicholas term, who intends to resign from her Class II directorship. The three Icahn nominations are in addition to the two Icahn representatives currently serving the board of thirteen directors. Michael O. Johnson, chairman and chief executive officer of Herbalife commented, “This is a very positive agreement and we appreciate the Icahn Parties' shared confidence in Herbalife's continued success. The current Icahn representatives have brought considerable insight and experience to our board and we look forward to working with the additional representatives in a similarly collaborative way. I would like to thank Carole Black, Michael Levitt and Colombe Nicholas for their many contributions to the board.”

We hope & believe our directors will enhance value & contribute to the long term success of $HLF, as we've done w/ many co's in the past.

— Carl Icahn (@Carl_C_Icahn) March 24, 2014

Carl Icahn emphasized Icahn Enterprises commitment to the success of Herbalife. In the press release, Icahn said, “We remain resolute in our commitment to the long term success of Herbalife. We continue to have confidence in its board and management team, and believe in the company's great potential. We thank the board for their trust in us and hope and believe our directors will enhance value and contribute to the long term success of the company, as we have done at so many companies over the past decade.”