Herbalife Will Add Two Icahn Nominees to Board

Herbalife

announced that it would increase the size of its board on Thursday, adding two new directors. Activist investor Carl Icahn will offer up nominees to fill the spots. Icahn first took a stake in Herbalife back in December, then increased it in January and February, acquiring about 15% of the company in total. According to Herbalife's release, Icahn can increase his stake up to 25%. Shares traded up about 2% after the news was released. Shares had already been on the rise, and were up nearly 7% on the session, trading near $40. Icahn has been publicly feuding with rival hedge fund manager Bill Ackman over Herbalife. Back in December, Ackman disclosed that he was short about $1 billion worth of Herbalife shares -- about one-fifth of the float. Following the release, Icahn appeared on Bloomberg TV. Icahn said that he wanted to buy more shares, and that he “didn't see the problems” that Ackman had pointed out. “I've read his report...I don't comprehend why, if you go short, you have to put out a 300 page report,” Icahn said, referring to Ackman. “I'm not even going to dignify what he does, except to say it certainly helped his year-end numbers.” “I have no idea why he's done it, nor do I care that much...I think that Ackman has given us the opportunity to buy a company at a discounted price...For that, I thank him,” Icahn added. Still, Icahn insisted that he wasn't making the investment just to target Ackman, rather he continues to believe that it's a good business offering an opportunity for unemployed people.