Icahn reaches deal with Southwest Gas to oust CEO, add up to four directors

May 06, 2022 9:44 PM ETSouthwest Gas Holdings, Inc. (SWX)By: Carl Surran, SA News Editor20 Comments

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Southwest Gas (NYSE:SWX) said Friday night that it reached a settlement agreement with Carl Icahn, allowing the activist investor to name up to four directors to its board.

Southwest Gas (SWX) President and CEO John Hester will be replaced by current Executive VP Karen Haller, effective immediately.

Haller will be appointed to the company's board immediately following the 2022 annual shareholders meeting, which has been rescheduled for May 19.

The deal calls for Icahn to appoint three directors immediately, with the right to name a fourth if Southwest Gas (SWX) fails to spin off the Centuri unregulated utility services platform within 90 days.

Southwest Gas (SWX) also amends its poison pill shareholder rights plan, raising the trigger to 24.9% from 10% in a move that lets Icahn boost his stake.

Icahn began his fight with Southwest Gas in October, when he opposed the company's planned $2B deal to buy Questar Pipelines from Dominion Energy.

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