(Adds details on settlement, background)
Feb 9 (Reuters) - Crane maker Manitowoc Co Inc said activist investor Carl Icahn will have the option to nominate a person to the company's board as part of a settlement agreement.
Icahn, Manitowoc's second-largest shareholder with a 7.8 percent stake, will also have the right to nominate a person to the board of the company's food services business after its spinoff.
The company also agreed not to reduce the trigger of 20 percent in its stockholder rights plan as part of the settlement.
The settlement comes barely two weeks after Manitowoc said it would spinoff its high-margin foodservice business, after Icahn joined Ralph Whitworth's Relational Investors in pushing for the move.
Manitowoc's crane business, its largest, has been suffering from weak demand for its boom trucks and falling revenue.
Revenue from the company's food business, which makes ice machines, refrigerators, deep fryers and other cooking equipment, increased about 3 percent in 2014.
Manitowoc's shares were up 2.4 percent at $21.03 in morning trade on the New York Stock Exchange. (Reporting by Ankit Ajmera, Radhika Rukmangadhan in Bengaluru; Editing by Savio D'Souza)