Deals
United Board Fight Breaks Out as Activists Turn to Bethune
- Former Continental chief to lead insurgent director slate
- Airline says `hostile action' will distract from CEO's plan
Activists Target United Continental
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Two United Airlines shareholders will nominate Gordon Bethune, renowned for resurrecting merger partner Continental, to head an insurgent director slate as the carrier’s top executive returns from a heart transplant.
Hedge funds Altimeter Capital Management LP and PAR Capital Management Inc. are backing six new board members led by Bethune, the former chief executive officer of Continental Airlines, which combined with United in 2010. The Tuesday announcement came a day after United Continental Holdings Inc. named three independent directors of its own -- and just as CEO Oscar Munoz is set to return from medical leave.