Herbalife has agreed to increase its board membership by two seats to be chosen by Carl Icahn. This move confirms his increased stake in the company to as much as 25% and fires another salvo into the feud between the investor and hedge fund manager Bill Ackman.
From the current nine members the board would have eleven seats according to a statement from Herbalife. The Cayman Islands based company reported that Icahn has a total of 13.6 interest in the company.
Icahn has said that he would talk to the company as to strategic alternatives including its privatization. On the other side of the fence is Ackman, who has divested his twenty million shares in the company and has repeatedly said that the company's multi-level marketing structure is a pyramid in disguise that regulators should shut down.
As a result, Herbalife shares rose to US$40.29 shares, up 7.6% at closing of the New York index. Overall, the share values have increased by 22% in 2013 alone.
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