Corporate raider Carl Icahn could be in a new phase starting today, his 88th birthdayTh Birthday. JetBlue Airways announced Friday that it had reached an agreement to give two representatives of Icahn's company seats on the company's board. The lightning-fast JetBlue deal came just days after the utility company American Electricity said it had reached an agreement with Icahn to put two of his representatives on the board.
At JetBlue, Icahn disclosed his 9.9% stake on Monday, the same day new CEO Joanna Geraghty took the job. On the same day, AEP also announced its own deal with Icahn. His shares in the two companies – and the profits – marked a public return to his well-known activist investing background after he withstood criticism from short seller Hindenburg Research last year and promised investors that he would stick to what he does best: Advocate for change on the board or CEO role and create value for shareholders.
In the joint statement, Geraghty said the company is working to restore its profitability. The airline has been reeling since a federal judge overturned a merger between JetBlue and Spirit Airlines a month ago.
JetBlue shares rose 16% when Icahn announced his stake this week and rose 5.9% in after-hours trading following the announcement. Bloomberg reported.
“We are executing more than $300 million in revenue initiatives this year and are on track to achieve significant cost savings through our structural cost program, fleet modernization and fixed cost base reduction,” Geraghty said, adding that JetBlue “welcomes the contributions of our new board members in achieving this shared goal.”
Icahn said he appreciated the “constructive collaboration” with JetBlue’s board and C-suite.
“We really look forward to working with them in the future,” he said.
JetBlue appointed Icahn Enterprises General Counsel Jesse Lynn and Icahn Capital portfolio manager Steven Miller, the company said in a statement submission with the SEC. Among other things, Lynn served on committees Crown stocks, FirstEnergy And Xerox. Miller is a board member at Dana IncorporatedBausch Health Companies and was previously a member of the Xerox Board of Directors.
JetBlue Chairman Peter Boneparth said Lynn and Miller would add “useful insights” to the board as the company embarks on a growth path. The two new board members will not be voting observers when they join the board on February 26 and will not have voting rights until after this year's annual general meeting.
Meanwhile, Icahn's $120 million stake in AEP brought board seats for Hunter Gary, senior managing director of Icahn Enterprises, who joined the AEP board along with Henry Linginfelter, former executive vice president of Southern Company Gas.