Elliott Management to call for Southwest special meeting as soon as next week

September 25, 2024 04:03 AM AEST | By Investing

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Elliott Management to call for Southwest special meeting as soon as next week

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Investing.com -- Elliott Management said Tuesday it would request a special meeting with SouthWest Airlines as soon as next week as the activist investor looks to push for leadership change amid concerns about the airline's course of action to turnaround its business.

Southwest is expected to unveil its plan to improve performance at its investor meeting slated for May. 25. But Elliot Management criticized the airline's decision to go-it-alone rather than take collaborative approach to restore performance that activist investor says would require leadership change.

Ellott, which has an 11% stake in Southwest, said it intends to formally call a special meeting in the coming weeks – possibly as soon as next week.

“We believe that competent new leaders, working through a deliberate and thoughtful process, should chart the course forward for Southwest,” Elliott partner John Pike and portfolio manager Bobby Xu said in a letter to shareholders.

Elliott also warned shareholders that the airline was seeking to limit the number of shareholders eligible to vote, via something known as a “false record date," urging them to take action against these "defensive actions."

The next "false record date" set by Southwest is Oct. 7.

"Elliott strongly urged all Southwest shareholders – especially those who engage in share lending or authorize their brokers to engage in share lending – to work with their banks and brokers as soon as possible to confirm that they are able to vote all their Southwest shares by no later than October 7," the activist investor fund said.

Southwest Airlines Company (NYSE:LUV) was up nearly 1% in recent trading.

This article first appeared in Investing.com

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