Activist Carl
Icahn
disclosed a 9.9% stake in
JetBlue Airways,
calling it an undervalued and “attractive” investment opportunity and adding he was talking to management and the board about possible board representation.
The disclosure came in a filing with the Securities and Exchange Commission on Monday.
The filing said Icahn could add to the stake, dispose of it, engage in hedging, or enter a swap or other derivative transaction. It also says he doesn’t have any plans or proposals as of now relating to actions outlined in the filing.
Icahn and his funds own about 33.6 million shares of the carrier, the filing said.
JetBlue shares jumped 14% in early premarket trading Tuesday.
A spokesperson for JetBlue said in an emailed statement to Barron’s: “We are always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders.”
The shares were purchased on multiple days from Jan. 19 to Feb. 12, the filing said.
JetBlue CEO Joanna Geraghty started in the role on Monday, becoming the first woman to run a major U.S. airline. She succeeded Robin Hayes. Geraghty had been president and chief operating officer at the carrier.
The company’s planned $3.8 billion purchase of discount carrier
Spirit Airlines
was recently blocked by a federal court judge, though they are appealing that decision.
JetBlue has also been cutting costs, aiming toward savings of $200 million by the end of this year. It is also planning changes that should boost revenue by $300 million.
Write to Liz Moyer at [email protected]
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