Activist investor Carl Icahn is close to a deal to get two JetBlue Airways board seats, the Wall Street Journal reported on Friday, days after he took a stake of about 10% in the airline.
The billionaire and the airline are finalizing a settlement agreement that would allow them to avert a proxy fight. It could be announced in the coming days, the WSJ reported, citing people familiar with the matter.
Icahn disclosed his JetBlue stake on Monday, saying in a filing he believed the shares were undervalued.
JetBlue and Icahn did not immediately respond to Reuters’ requests for comment.
The company faced a major setback last month after a US judge blocked its $3.8 billion planned merger deal with Spirit Airlines on anti-competitive grounds.
JetBlue earnings have also come under pressure from higher operating costs and uneven travel demand. Its new CEO, Joanna Geraghty, has vowed “aggressive action” to return the airline to profitability.
Shares of the low cost airline were up 2.3% in extended trading.
Icahn has built his reputation over the years as a corporate raider and activist shareholder, pressuring companies make changes to their business strategies and boost their stocks.
This story originally appeared on NYPost
