Two investment funds are trying to shake up the board of the number two airline, saying the directors are making bad decisions. Bobbi Rebell reports.
Turbulence in the boardroom at United Continental, the second largest U.S. airline. Two investment funds with a big stake, PAR Capital and Altimeter Capital, aren't happy with the company's performance and have nominated six directors to the airline's board- citing the board's "poor performance and bad decisions." United is resisting the move, adding three new independent directors, bringing the total to 15, though, it says some will step down. United said they tried to work with the investors, but that the investors were "uninterested" in an agreement. United Continental stock lost 13 percent over the last year, and has had business execution problems since United merged with Continental in 2010. Reuters correspondent Alwyn Scott: (SOUNDBITE) ALWYN SCOTT, REUTERS CORRESPONDENT (ENGLISH) SAYING: "The integration process between the two airlines has been really slow. Profits have suffered. There have been computer glitches. Employee morale has been low. Customers have been dissatisfied, and they have been going to other airlines." The funds' plan to shake up the board comes only two days after CEO Oscar Munoz returned from medical leave after a heart attack. Shareholders have until Saturday to submit board nominations for the annual meeting, which is expected to take place in June.