United Continental investors launch website about director nominees

Two hedge funds that hold 7.1% of the stock of United Continental Tuesday unveiled a new website aimed at educating other UAL holders about their campaign to put a slate of six people on the airline’s board at its annual meeting this spring. PAR Capital Management and Altimeter Capital Management last month launched a proxy fight by nominating a minority slate of six directors to United’s board, which now numbers 15 members. The two firms, longtime airline and travel-industry investors, claim the current airline board is responsible for the airline’s “chronic underperformance” since the 2010 merger that joined United and Continental. The two firms, not known for being activist investors, last month unveiled a slate that includes some executives familiar with aspects of the airline business, along with Gordon Bethune, the former CE of Continental and an industry veteran. United said at the time that the move was a “hostile action” that could distract from the turnaround now being pursued by new CEO Oscar Munoz. The airline’s pilot union derided the hedge funds’ plan as “an attempted coup” that “unnecessarily distracts all employees from our commitment to improve customer service and grow United Airlines.” The union is organizing picketing by airline employees on Wednesday outside the Boston offices of the two hedge funds.<br/>