February 28, 2013
Corporate Chairman Michael Aiello and Corporate partners Thomas Roberts and Matthew Gilroy are advising the Board of Directors of Herbalife Ltd. in its defense against a position taken in the company by activist investor Bill Ackman of Pershing Square Capital Management, L.P. After several months of a public duel between Bill Ackman and Carl C. Icahn, Herbalife, a maker of nutritional supplements, announced on February 28, 2013 it had reached an agreement with activist investor Icahn of Icahn Enterprises Holdings L.P. and certain related entities. As part of the agreement, Herbalife will increase its Board of Directors by two, who will be designated by Icahn Enterprises and approved by Herbalife’s Nominating and Corporate Governance Committee. The media-driven public contest between Ackman and Icahn began in December 2012 when Ackman took a short position on Herbalife’s stock on the theory that the company was essentially running a pyramid scheme and had little to no inherent value. Icahn entered the fray by publicly backing Herbalife. The two have been slugging it out through a variety of media outlets ever since. Herbalife and Icahn have announced that Icahn has increased his position in Herbalife to 13.6 percent with a right to further increase that stake up to 25 percent in addition to naming two additional members to the Herbalife board.
In addition to Michael Aiello, Thomas Roberts, and Matthew Gilroy, the Weil team includes Corporate associate Allison Donovan (all in New York).