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Elliott, Southwest Said to Near Settlement to Avert Board Battle

  • Activist Investor Elliott would get some board seats with deal
  • Settlement agreement could be announced as soon as Thursday
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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.