Elliott Investment Management and Southwest Airlines (NYSE:LUV) have begun discussing a potential settlement that could avoid a proxy fight for control of the airline company’s board. What Happened: Elliott has proposed a plan that involves giving it representation on the airline’s board without control,

Southwest Airlines and its activist investor Elliott Investment Management, which owns approximately ten percent of the airline, have begun discussing a potential settlement that will appease the investment firm by providing it with more representation on the airline’s board.

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.