Herbalife Ltd. (NYSE:HLF) shares have jumped 6 percent in value since trading on them resumed. It was halted briefly Thursday afternoon in anticipation of some important news regarding the company.

The company has just announced that it has reached an agreement with Carl Icahn, who initiated a large stake in the company earlier this year.


Icahn’s stake stands now at 13.6 percent or about 14 million shares. Under the agreement, Herbalife Ltd. (NYSE:HLF) will increase the size of its board from nine to 11 members right before the company’s annual shareholder meeting.

Icahn will choose two individuals who will then be approved and nominated to join Herbalife’s board.

The agreement also includes “certain standstill provisions,” which means Icahn and his related entities will “vote their shares in support of all of the Board’s director nominees.”

Icahn and his related entities also will be allowed to increase their stake in the company by up to 25 percent of the company’s outstanding common stock. Herbalife Ltd. (NYSE:HLF) is attaching a copy of the agreement and further information with its latest filing with the Securities and Exchange Commission.

This isn’t the first time in recent months that trading on shares of Herbalife Ltd. (NYSE:HLF) was halted briefly. This also happened back in December when the controversy surrounding the company first began.

Bill Ackman announced his large short position in the company and called it a pyramid scheme. He also went on to present an extensive thesis about everything he thinks is wrong with the company.

One by one, prominent hedge fund managers took sides on the company. Dan Loeb and Carl Icahn both opposed Ackman by going long on the stock, while David Einhorn was short on the stock, although he closed out that position last year.