Just four days after Carl Icahn revealed a 9.9% stake in JetBlue Airways Corp. Signaling his intention to have a say in the company's future, the activist investor secured two seats on the low-cost airline's board.
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He said late Friday that two companies from Icahn Enterprises IEP,
Executive Directors, General Counsel Jesse Lin and Portfolio Manager Stephen Miller will join the airline's board of directors.
“We appreciate the constructive engagement we have had with JetBlue’s board and leadership team. We very much look forward to working with them in the future,” Icahn said in a statement.
The Wall Street Journal reported earlier Friday that Icahn and JetBlue were in the final stages of a settlement agreement that would avoid a proxy fight. The report quoted people familiar with the matter.
American utility company American Electric Power Co. Inc. Ohio-based AEP,
Earlier this week, it announced an agreement with Icahn to give the activist investor two seats on the company's board of directors.
Icahn disclosed his stake in JetBlue late Monday, saying the airline's shares are “undervalued and represent an attractive investment opportunity.”
The SEC filing type, Schedule 13D, reflects some intent to influence the direction of the company, rather than the more common document, Schedule 13G.
Funds owned by billionaire investor and philanthropist George Soros unveiled new stakes in JetBlue and other low-cost U.S. airlines earlier this week, a bet on continued demand for leisure air travel.
JetBlue is appealing a court ruling blocking its merger with Spirit Airlines Inc. Very low cost.
Which indicated competition concerns.
Also on appeal is a previous court decision to ban JetBlue and American Airlines Group Inc.'s AAL.
North-East Alliance, also on the grounds that it would stifle competition.
JetBlue's board will expand to 13 directors with the addition of Lynn and Miller after its annual meeting, “12 of whom are expected to be independent,” the company said.
Buoyed by recent investments, JetBlue stock is up 17% this week, compared with a 1.5% gain for the US Global Jets ETF JETS and in contrast to a 0.4% weekly loss for the S&P 500 SPX..
However, in the past 12 months, JetBlue shares have fallen 19%, versus gains of about 22% for the S&P and about 0.2% for the ETFs.
