Carl Icahn To Get Three More Board Seats at Herbalife Ltd. (HLF)

Carl Icahn and Herbalife Ltd. (NYSE:HLF) have strengthened their ties, with the company having agreed to offer Icahn more board seats. According to an amended filing with the Securities and Exchange Commission, Herbalife will put up for election three representatives of Icahn: Hunter Gary, Jesse Lynn, and James Nelson. Mr Gary and Mr Lynn are candidates for Class I directors, while Mr. Nelson is to be elected as Class II director. The election will take place at the company’s 2014 Annual Shareholders’ Meeting, scheduled for April 29. This new agreement will give Carl Icahn 5 board seats out of the total number of 13 seats. Following the announcement, the shares of Herbalife have jumped as much as 9% and are currently trading at $53.50 apiece.

ICAHN CAPITAL Carl Icahn

Carl Icahn and his fund Icahn Capital LP, together with its subsidiaries, hold an aggregate of 16.9 million shares of Herbalife Ltd. (NYSE:HLF), which accounts for approximately 16.8% of the company’s common stock. The fund’s stake is valued at $1.33 billion, according to its latest 13F report. Carl Icahn retains his option to increase his fund’s stake in Herbalife up to 25% of the common stock of the company.

Another hedge fund guru heavily invested in Herbalife Ltd. (NYSE:HLF) is George Soros. The legendary investor currently holds 3.2 million shares valued at $252 million, having decreased his fund’s position by a third during the previous quarter. Steven Richman is also keeping and eye on the stock, with his fund, East Side Capital (RR Partners) owning a little over 3 million shares valued at $237 million. Richman has not made any changes to his position during Q4 of 2013.

A nutrition company with global presence, Herbalife Ltd. (NYSE:HLF) has a market cap of $5.39 billion and pays an annual dividend of $1.20, which represents a yield of 2.4%. So far this year, the stock has been in a downtrend, falling 32% to a current price of $53.50. It is traded at a Price to Earnings (P/E) ratio of 10.xx, almost half the industry average of 19.60. For the three months ending December 31, 2013, the company posted revenues of $1.26 billion and earnings of $1.16 per share. Analysts expect Herbalife to register revenues of $1.23 billion and EPS of $1.29 for the current quarter.

Disclosure: none.

Recommended reading:

Lee Ainslie Is Betting On Castlight Health, Inc. (CSLT); Kenneth Mario Garschina Ups Stake In Babcock & Wilcox Co (BWC)

SPO Advisory Corp Raises Position in Equinix Inc (EQIX)

Ralph V. Whitworth’s Relational Investors Trims Stake in SPX Corporation (SPW)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!