Elliott doubles down on Southwest calling board ‘out of touch’

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Elliott doubles down on Southwest calling board ‘out of touch’
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Elliott Investment Management sent another letter to Southwest Airlines' board of directors Monday.

On June 10, Elliott Investment Management wrote its first letter disclosing its stake in Southwest Airlines.in a new letter to board members calling the airline’s board of directors “out of touch” with the reality of the financial situation the carrier is in.

The letter, signed by John Pike, partner at the firm, and Bobby Xu, an Elliott portfolio manager, points to Southwest lowering its financial expectations for the quarter,“demonstrate how profoundly out of touch Southwest’s board has become with shareholder sentiment and with the reality of the situation.”“Quite simply, we are seeking to strengthen oversight, upgrade management and improve company performance,” the letter read.

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