Billionaire Carl Icahn is said in discussions to reach a settlement with Southwest Gas (NYSE:SWX) that would allow the activist investor to get as many as four seats on the board.
Talks are still taking place and could still fall apart before the company's annual meeting next week, according to a Bloomberg report.
A settlement would end months of fighting between Icahn and the utility. Icahn sought to gain control of the company's board and replace its chief executive officer; his tender offer to buy the company for $82.50/share was rejected by the Southwest (SWX) board as "inadequate."
The settlement talks came after prominent proxy advisory firms ISS and Glass Lewis recommended partial support for Icahn's nominees last week, according to an earlier Bloomberg report. ISS recommended shareholders vote for four of Icahn’s candidate, while Glass Lewis recommended two of his nominees.
Southwest Gas last month said its board authorized a review of strategic alternatives, including a potential sale of the company. Icahn said he we wouldn't make a bid for the company in the strategic review run by either the incumbent board or the activist investor's proposed new board.
Icahn began his battle with Southwest Gas (SWX) back in October, when the company adopted a poison pill to try to thwart him as he opposed the company's planed $2B deal to buy Questar Pipelines from Dominion Energy.