United Continental will likely comply with demands by two hedge fund activist investors to add nominated directors to its board.
CNBC reports an agreement with PAR Capital Management Inc and Altimeter Capital Management LP could take effect from next week, which could include an independent chairman.
The two funds own a combined 7% in United.
The funds launched a move in March which was spearheaded by former Continental Airlines CEO Gordon Bethune, calling for seats on the board.
Seeking to appease the hedge funds, United appointed three new members, including former CEO of Air Canada Robert Milton.
Bethune had described the United board as a ‘country club’ while while United board chairman Henry Meyer said it was ‘deeply disappointed at the hostile action’ by PAR and Altimeter.
