Southwest Airlines struck a truce with Elliott Investment Management, giving the activist a significant presence on its board but not the majority control the hedge fund initially sought. The settlement announced Thursday deflects a potentially rancorous proxy fight and ends the acrimonious four-month battle over whether Southwest’s management is capable of pulling the airline out of a funk.

Elliott Investment Management and Southwest Airlines Co. are nearing a settlement that would avoid a proxy fight for control of the carrier’s board, according to people familiar with the matter.

Elliott Investment Management and Southwest Airlines are close to reaching a settlement agreement that would avert a proxy battle over control of the airline's board, Bloomberg News reported on Wednesday,

Six new directors will join the Southwest board, including five of Elliot's nominees; chairman and former CEO will step down earlier than scheduled.

Activist investor Elliott Investment Management and Southwest Airlines are in talks to settle their months-long battle, according to reports Sunday, with a potential deal that would give Elliott representation on the budget airline’s board.

After more than four months of waging a public battle with activist investor Elliott Investment Management, low-cost pioneer Southwest Airlines. may

Southwest Airlines Co. (NYSE: LUV) announced early Oct. 24 an agreement with activist investor Elliott Investment Management that will reshape the Dallas-based airline's board and avert a proxy fight.