Activist investor Carl Icahn has secured two board seats at JetBlue Airways, according to a report by Reuters [fc1a94bd]. Icahn, known for targeting undervalued companies, recently disclosed a 10% stake in the airline. JetBlue has agreed to appoint Jesse Lynn and Steven Miller from Icahn's firm to its board. The additions will expand the board to 13 directors, with 12 expected to be independent.
JetBlue Airways has been facing challenges in its efforts to return to sustainable profitability. The airline has been dealing with a blocked acquisition and higher operating costs. Despite these challenges, JetBlue's stock has gained 36% since a recent merger ruling.
The appointment of Icahn's representatives to the board is seen as a move to bring about changes and improve the airline's performance. Icahn has a history of pushing for changes in companies he invests in, and his presence on the board is expected to have an impact on JetBlue's strategic decisions and future direction.
This development comes at a time when the aviation industry is recovering from the impact of the COVID-19 pandemic. JetBlue Airways, like many other airlines, is navigating through a challenging period and looking for ways to adapt to the changing market conditions.
The addition of Icahn's representatives to JetBlue's board is likely to bring fresh perspectives and expertise to the company. It remains to be seen how their presence will influence the airline's operations and strategies moving forward.
In other news, Icahn Enterprises has named Andrew Teno as its CEO, replacing David Willetts, who will head one of the firm's portfolio companies. Teno, who has been the portfolio manager at Icahn Capital, is also a board member of Southwest Gas Holdings and Illumina. Carl Icahn, the chair of IEP, praised Teno's stock picking and position stewardship. The company also announced that it will maintain its quarterly dividend of $1 per depositary unit. Shares fell nearly 2.7% in early trading. Outgoing CEO Willetts will lead Pep Boys, an auto repair and service firm acquired by IEP in 2015.
The leadership change at Icahn Enterprises reflects the company's ongoing efforts to optimize its operations and drive growth. Teno's appointment as CEO brings an insider with experience in stock picking and position stewardship, which aligns with Icahn's investment strategies. The company's decision to maintain its dividend indicates confidence in its financial position and commitment to delivering value to shareholders.
Overall, these developments highlight Carl Icahn's active involvement in both JetBlue Airways and Icahn Enterprises, as he seeks to influence the strategic direction and performance of these companies.
Billionaire investor Carl Icahn is betting big on three stocks: Icahn Enterprises (IEP), CVR Energy (CVI), and Southwest Gas (SWX). Icahn Enterprises is his biggest holding, accounting for 58% of his portfolio's total. CVR Energy is a diversified energy company with assets in petroleum refining and fertilizer production. Southwest Gas is a natural gas company involved in purchasing, distributing, and transporting natural gas across North America. Icahn has significant stakes in all three companies and uses his positions to push for changes and improvements. [39ec9403]