(Bloomberg) -- Activist investor Carl Icahn is in talks to reach a truce with Southwest Gas Holdings Inc. that could see the billionaire investor take as many as four seats on the board, according to people familiar with the matter.
The settlement would put an end to the billionaire's months-long battle with the U.S. utility owner. Talks are still ongoing and the deal could still fall apart ahead of the company's annual general meeting next week, said the people who asked not to be identified because the matter is private. Representatives for Icahn and Southwest Gas declined to comment.
Shares of Southwest Gas rose 0.3% in after the close of regular trading in New York.
Icahn has been agitating for changes at Southwest Gas since October, shortly before the utility announced plans to acquire pipeline company Questar for roughly $2 billion. The move triggered a series of events that included Icahn's attempt to replace 10 directors on the company's board, his offer to help finance the equity portion of the Questar deal himself and even an offer to buy the Las Vegas-based company.
Southwest Gas said last month it was reviewing its strategic options including a possible sale of the company after receiving interest from a potential buyer “well in excess” of Icahn's $82.50-a-share offer.
The settlement talks come after two prominent shareholder advisory firms threw their partial support behind Icahn last week. Institutional Shareholder Services Inc. recommended shareholder support four of Icahn's nominees, while Glass Lewis & Co. recommended two of his nominees.
Read more: Icahn Gets Some Support in Board Battle Over Southwest Gas
There was no overlap though between the nominees they supported, which means the two proxy advisory firms recommended six Icahn nominees be elected to the board on a combined basis. That made the outcome of the vote slated for May 12 at the company's annual meeting murky.
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