Hertz agrees to replace three directors in investor deal

Hertz Global Holdings has reached an agreement in principle with investor Carl Icahn to appoint three directors to the board of the rental car company in place of current members.

Hertz would add Icahn associates Vincent Intrieri, Samuel Merksamer and Daniel Ninivaggi to the board and three current directors would retire, the company said in a statement on Thursday.

Two of the new directors will be among five board members on a search committee for a new chief executive.

In return, Icahn agreed not to seek board representation and to vote in favour of company nominees for election at next year's annual meeting, according to the statement.

As part of the settlement, the threshold for triggering Hertz's shareholder rights plan was raised to 20 per cent from 10 per cent. Icahn and associates hold less than 9 per cent.

"There's been constructive dialogue and the board is open to ways to create shareholder value, so that's good news," said Christopher Agnew, an analyst at MKM Holdings.