Elliott Investment Management, the activist investor that has tried to shake up Southwest Airlines has disclosed a 7% beneficial ownership.
Under Southwest Airlines’ bylaws, one or more shareholders must own 10% of all shares entitled to vote a special meeting to call a meeting.After months of pressure on Southwest over slumping financial performance and a series of operational missteps, Elliott upped the pressure on the air carrier by detailing to the company, investors and regulators that it was approaching a key stake that would allow it to call a new meeting of shareholders and potentially oust company leadership.
According to the filing, Elliott has less than 10% but has been accumulating common shares quickly over the last 60 days.Keith Gottfried, managing member of Gottfried Shareholder Advisory, said Elliott is making it clear that it is moving quickly on its asks. “The message is there,” Gottfried said. “Particularly in the past week, they’ve been acquiring shares at a fairly rapid clip and they’re probably doing that to lend credibility to their indication that they are prepared to call a special meeting.”made up of common stock and derivatives. That has not changed since its initial letter to Southwest’s board. That 11% economic stake includes another chunk of stock that do not count as voting shares.
“ trying to send a message that if those discussions don’t result in the leadership changes and the business review that they’ve called for, that they’re moving quickly to position themselves, to request the special meeting to replace directors with their candidates.”Dallas Love Field was not one of the five initial markets Southwest chose to begin overnight flights with. Here's why., Aviation Reporter.
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