The move comes weeks after the billionaire investor announced that he had acquired a 13.6% stake in the company. Under the deal to add the new board members, Icahn can raise his stake in Herbalife to 25%, the Associated Press noted.
Icahn’s growing investment in Herbalife comes after hedge fund manager Bill Ackman denounced the company as a “pyramid scheme” in December. Icahn criticized Ackman’s comments and the two clashed during a January appearance on CNBC television.
Ackman has taken a “short” position in Herbalife. If the company’s share prices rise significantly, that position would be endangered.
In January, media reports revealed that the company is the target of a probe by federal regulators, who have received 192 complaints by former distributors.
Herbalife shares rose fractionally in Friday morning trading.