United Likely to Revamp Board at Hedge Funds Request
United Continental Holdings will likely comply with two hedge funds’ request and add directors to its board, including an independent chairman, CNBC reported on Monday.
An agreement with the funds, PAR Capital Management and Altimeter Capital Management, may come within the next week, CNBC reported, citing unidentified sources.
The funds, which together own about 7% of the U.S. airline, launched a fight for control in March, proposing a slate of directors led by former Continental Airlines Chief Executive Gordon Bethune to shake up the board of the poorly performing airline.
United (UAL) tried to placate shareholders by expanding its board by three directors in March. The new appointments included James Whitehurst, former chief operating officer of Delta Air Lines and Robert Milton, former chief executive of Air Canada.
United declined to comment.
Altimeter and PAR could not immediately be reached for comment.