Boston, MA 09/18/2014 (wallstreetpr) – According to reports, Hertz Global Holdings, Inc. (NYSE:HTZ) signed a definitive agreement-in-principal with the activist investor Carl C. Icahn recently on September 11, 2014. After a few days time, HTZ has disclosed that three of Icahn’s men will be given place in company’s board.
Insights of agreement:
As per the reports, three men who have been given place in the board of HTZ as Class I and Class II directors are Samuel Merksamer, Vincent J. Intrieri and Daniel A. Ninivaggi. Other than these three men, Messrs. Intrieri and Merksamer will also be a part of five members search committee. The committee will be headed by Linda Fayne Levinson; Independent Non-Executive Chair of the company. The main objective of this agreement will be to find a permanent CEO for Hertz Global Holdings, Inc. (NYSE:HTZ) as soon as possible.
The three members who have retired in order to make a fresh place for these three directors are Barry H. Beracha, Henry C. Wolf and Philippe P. Laffont. Recently Carl C. Icahn announced in the first half of the previous month that he had bought 38.8 million shares in the company. He paid a huge sum of $470.5 million for his stake in the company. After the purchase transaction, he intended to engage in talks with the management of Hertz Global Holdings, Inc. (NYSE:HTZ) in order to obtain a seat among the board of directors. After a few days time, another hedge fund company named Fir Tree Partners jumped in the battlefield. It owned 3% stake in HTZ, so it went to make serious remarks about Mark Frissora, then Chief Executive Officer of Hertz Global Holdings, Inc. (NYSE:HTZ). When it became unbearable to afford the pressure put by both the hedge fund companies, Frissora finally decided to hang is shoes and vacate CEO’s chair. Experts think that Icahn has got way more than what he would have expected.