Southwest Airlines investor Elliott Management plans to launch a proxy fight at the airline, and will nominate up to 10 directors to the company’s board.
Elliott is preparing to launch a proxy fight at Southwest Airlines and will nominate as many as 10 directors to the company's 15-person board.The activist needs to own 10% of the company's common stock to call a special meeting., and intends to nominate as many as 10 directors to the company's 15-person board, according to a person familiar with the matter.The activist has already amassed an economic interest of roughly 11%, although only 7% is in common stock.
Southwest had been studying such changes for years, but an oversupplied U.S. market has driven down fares, forcing the carrier and its rivals to adopt new business models to drum up revenue. Budget carrier Spirit Airlines, for example,it would start selling a sort of business class with its bigger seats at the front of the cabin that will come with complimentary Wi-Fi, snacks, drinks and checked luggage.
A representative for Southwest did not immediately return a request for comment. News of Elliott's plans was reported earlier by theThis is breaking news. Please check back for updates. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly
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