(Reuters) -Elliott Funding Administration and Southwest Airways (NYSE:) are near reaching a settlement that may avert a proxy battle for management of the airline’s board, Bloomberg Information reported on Wednesday, citing individuals accustomed to the matter.
The events are negotiating a deal that may grant the activist investor a number of board seats however fewer than a majority, the report mentioned, including {that a} settlement might be introduced as quickly as Thursday.
Bloomberg didn’t say what number of board seats Elliott may get. The activist investor, with a ten% stake in Southwest, is gunning to interchange eight administrators and take management of the corporate’s board, which is predicted to shrink to 12 from 15 members subsequent 12 months.
Elliott had taken its struggle with Southwest to traders by calling for a particular shareholder assembly after pushing for months to interchange some board members, oust CEO Bob Jordan and get the airline to evaluation its technique to enhance monetary efficiency and enhance the share worth.
The Bloomberg report mentioned it wasn’t clear what a possible settlement would imply for CEO Jordan and that the settlement was not last and that there was a chance that talks may collapse.
Southwest declined to touch upon the Bloomberg report, whereas Elliott didn’t instantly reply to a request for remark exterior common enterprise hours.
Southwest, which has been struggling to stay worthwhile for the reason that COVID-19 pandemic, has taken steps to show its fortunes round, together with by including seats with extra legroom and dropping its marquee open seating system.