Elliott Management, a major shareholder in Southwest Airlines, is calling for a special meeting to be held as soon as next week. The activist investor is seeking to make changes to the airline’s board of directors in order to improve the company’s performance and shareholder value.
Elliott Management has been a vocal critic of Southwest Airlines in recent months, arguing that the company’s stock price has underperformed its peers and that changes need to be made in order to turn things around. The hedge fund has proposed adding three new directors to the board, including former Continental Airlines CEO Gordon Bethune.
Southwest Airlines has pushed back against Elliott’s proposals, arguing that the hedge fund’s demands are not in the best interest of the company or its shareholders. The airline has defended its current board of directors, stating that they have the necessary experience and expertise to guide the company through its current challenges.
Despite Southwest’s objections, Elliott Management is determined to move forward with its plans for a special meeting. The hedge fund has stated that it believes its proposals will help to improve the airline’s performance and create value for shareholders.
Investors will be closely watching to see how this situation unfolds in the coming weeks. Southwest Airlines has a strong track record of success, but Elliott Management’s calls for change have raised questions about the company’s future direction. It remains to be seen whether the airline will be able to reach a compromise with its largest shareholder or if a showdown at a special meeting will be necessary to resolve the situation.