Activist investor Carl Icahn is close to a deal to win two seats on JetBlue Airways’ board of directors. The Wall Street Journal reported Friday, just days after he acquired about 10% of the airline’s stock.
The billionaire and the airline are finalizing a settlement agreement that would avoid a proxy fight. WSJ, citing people familiar with the matter, reported that an announcement could be made in the coming days.
Icahn opened up about JetBlue stock on Monday, saying in a filing that he believes the stock is undervalued.
JetBlue and Icahn did not immediately respond to Reuters requests for comment.
The airline faced a major setback last month when a U.S. judge blocked its planned $3.8 billion merger with Spirit Airlines on anticompetitive grounds.
JetBlue’s profits have also been squeezed by rising operating costs and uneven travel demand. New CEO Joanna Geraghty has vowed “aggressive action” to return the company to profitability.
The company’s stock rose 2.3% in after-hours trading.
Mr. Icahn has built a reputation over the years as a corporate raider and activist shareholder, pressuring companies to change their business strategies and raise their stock prices.
