March 31 (Reuters) - Investment firm Ancora Holdings has

reached an agreement with Elanco Animal Health ( ELAN ) to add

two of its director candidates to the company's board, Bloomberg

News reported late on Sunday, citing people with knowledge of

the matter.

Elanco, which makes medicines and vaccinations for pets and

livestock will add Ancora nominees Craig Wallace and Kathy

Turner to its board of directors, the report said.

However, Elanco CEO Jeff Simmons will retain his position,

the report added.

In February, Ancora had said that it was pushing for four

board seats at Elanco and wanted to replace the company's chief

executive over what the activist investor called poor

performance.

Elanco and Ancora did not immediately respond to Reuters'

requests for comment.

At the end of December, Ancora owned 10.5 million shares, or

2.13% of the Greenfield, Indiana-headquartered company, making

it one of Elanco's biggest investors, according to a regulatory

filing.