By Svea Herbst-Bayliss and Maggie Fick

Catalent Inc is close to reaching a settlement with Elliott Investment Management that would lead to a shake-up of the U.S. contract drug manufacturer's board of directors after its share price lost half of its value in the last year.

The company is poised to agree to add four new directors proposed by Elliott to its board, which currently has 12 members, people familiar with the situation said on Monday.

The sources declined to be identified because the information is confidential and cautioned a deal could still collapse at the last minute.

Spokespeople for Catalent and Elliott declined to comment.

(Reporting by Svea Herbst-Bayliss in Boston and Maggie Fick in London; Editing by Chris Reese)