Posted March 4, 2013 by David H in Health

Two new members on Herbalife board

screen shot 2013-02-20 at 10.29.53 am
screen shot 2013-02-20 at 10.29.53 am

Northern, WI 03/04/2013 (avauncer) - After Carl Icahn increased his stake to 25% in the company, he nominated two members on the board of Herbalife Ltd (NYSE:HLF). The two members who were appointed are Jonathan Christodoro and Keith Cozza.

Christodoro, 36 is a M.D at Icahn Capital LP and Cozza, 34 is a CFO at Icahn Associates Holding LLC. They are competing in election procedure of the company on April.25 which is an annual shareholders meeting. The board is about to extend from 11 members to 9 as per the statement of this Cayman Island based company. Icahn had 13.6 shares in Herbalife 0.6% increase as per last month’s records.

Icahn disclosed that after finding out his investments in the company on Feb.14 he is intended to talk to the company personals about new strategies, this includes taking the company private. Stake hodings of Ackman are larger than Icahn; Ackman sold 20 million shares of the company and believes that the company should shut down its multilevel marketing system.

Icahn, 77 stated that “Ackman has given us an opportunity to buy the company at cheaper price” in an interview for Bloomberg television yesterday. He also stated that the company is in 87 countries and this can be a good opportunity for the people of these countries to make money.

Icahn is still not sure whether he want to buy more shares of the company at current price or he want to micromanage the company. Herbalife is up by 0.3% closing at $40.10 in New York. Standard & Poor’s 500 Index advanced 6.5 percent and the company shares are up by 22% this year.

Herbalife President Des Walsh declared on 27th Feb, that the company would consider going private in buyout under valid reasons.

Walsh even said that the real value of the company is not at all represented by the current stock price. He believes that company’s potential can be revealed if they can manage to make it private.

In short sale, investors borrow the shares and sells them hoping to return them under lower price in future.

Achman has not yet responded to the comments regarding Icahn. U.S. regulators at the Federal Trade Commission and the Securities and Exchange Commission declined comments regarding the inspection of the company.

Thomas Graves, New York-based equity analyst at S&P Capital IQ said that Icahn may hold greater sway at Herbalife but full acquisition is not in cards.

Graves said that the people expecting greater profits from recapitalization of the company and full acquisition of Icahn is not appropriate at this moment.

Herbalife Ltd (NYSE:HLF) is up by 0.28% closing at $40.10

David H

David H. Steinberg grew up in West Hartford, Connecticut, entered Yale at age 16, and earned his law degree from Duke University, where he served as editor-in-chief of the law review. After four years of entertainment law in Atlanta and New York, he abandoned his legal career to attend U.S.C.’s Peter Stark Producing Program. Steinberg broke out as a writer in 1999 with his teen comedy SLACKERS that ignited a bidding war for the script. The movie starred Devon Sawa, Jason Schwartzman, and model Jaime King and became an instant cult classic.