August 12, 2019 / 11:51 AM / 12 days ago

Cloudera to give two board seats to Icahn in settlement

(Reuters) - Cloudera Inc (CLDR.N) said on Monday it would give two board seats to Carl Icahn as part of an agreement with the activist investor to limit his ownership in the data analytics company to 20%.

Icahn had disclosed a 12.6% stake in Cloudera earlier this month and said he could seek seats on the company’s board. He raised his stake to 18.4% as of Aug. 9.

Cloudera’s shares, which have lost nearly 37% of their value so far this year, rose about 2% to $7.15 in premarket trading.

The company has been incurring net losses since its founding in 2008 and said, in its last annual regulatory filing, that it expected to incur losses for the foreseeable future.

Nicholas Graziano, portfolio manager of Icahn Capital LP and current director at Xerox Holdings Corp (XRX.N), will join Cloudera’s board along with Jesse Lynn, General Counsel of Icahn Enterprises L.P., taking the board’s composition to 10 members.

As part of the deal, Cloudera said Icahn’s firm had agreed not to nominate any directors at its annual meeting and would vote all its shares in favor of the company’s director nominees.

Graziano will join the company’s Mergers & Acquisitions Committee, while Lynn will be part of the search committee for a new Chief Executive Officer.

Reporting by Uday Sampath in Bengaluru; Editing by Shailesh Kuber

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