(Bloomberg) -- Elliott Investment Management and Southwest Airlines Co. are nearing a settlement that would avoid a proxy fight for control of the carrier’s board, according to people familiar with the matter.
Elliott and Southwest are discussing a framework that would result in the shareholder activist receiving several board seats but less than a majority, said the people, who asked to not be identified because the details aren’t public. A settlement could be announced as soon as Thursday, said one of the people.
Nothing has been finalized and it’s possible that settlement talks could fall through or the framework could change, the people said. It isn’t clear what if anything the potential settlement would mean for Southwest Chief Executive Officer Bob Jordan. Chairman Gary Kelly has already agreed to step down at the company’s next annual meeting.
Representatives for Southwest and Elliott declined to comment.
Elliott has nominated eight directors to the Southwest board and called for a special shareholder meeting on Dec. 10, setting up what would be the firm’s first US proxy fight since 2017. Southwest hasn’t set a date for the special meeting.
Bloomberg News reported on Oct. 19 that the airline and Elliott had begun settlement talks.
--With assistance from Mary Schlangenstein.
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