Elliott Investment Management Increases Stake in Southwest Airlines to 10% 🛫

Elliott Investment Management now holds 10% of Southwest Airlines’ common stock, crossing the threshold to call a special meeting, according to a source. This development comes just before a meeting scheduled for September 9 to address Southwest’s declining stock value, which has dropped by about half over the past three years. The hedge fund, with $70 billion in assets, has demanded the removal of CEO Robert Jordan and Executive Chairman Gary Kelly, and plans to nominate 10 directors to the 15-member board. Elliott converted its 11% economic stake through derivatives into common shares, maintaining its overall stake. Jordan has stated he will not resign and is prepared to fight Elliott’s proposals. If Elliott calls a special meeting, it would mark a significant escalation in their dispute.