Elliott Investment Management has acquired a significant 10% stake in Southwest Airlines (NYSE:LUV) common shares, enabling the activist to demand a special meeting.
The widely-known activist hedge fund, having previously held an 11% economic stake in Southwest (LUV) through derivatives, has now converted a portion of its holdings into common shares to surpass the crucial 10% threshold. This move comes as per a recent Reuters report.
Elliott’s decision to cross this threshold coincides with their upcoming meeting with Southwest Airlines (LUV) scheduled for September 9. In a bold strategic move, Elliott had announced plans last month to nominate 10 director candidates for the airline’s 15-person board.
Elliott had confirmed its substantial $2 billion stake in Southwest (LUV) back in June. The activist group had actively advocated for a comprehensive business review within the airline and held firm to their belief that the airline’s stock could surge to $49 a share. Elliott had also called for a shift in leadership, pinpointing the roles of CEO Bob Jordan and Chairman Gary Kelly for particular scrutiny.
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