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A showdown between Southwest Airlines (LUV) and an activist hedge fund spendor is finpartner coming to a head. Elliott Management says it arranges to call a exceptional splithelderlyer encountering to help it defended regulate of the company.
“The encouragency of regulatement and Board alter at Southwest could not be evidgo in,” the fund shelp in a letter. “In the coming weeks, we will be createpartner seeking a exceptional encountering to supply you with a choice between the new honestors that we have put forward — who we suppose have the qualifications and sends to direct Southwest to a radianter future — or a Board that deficiencys relevant expertise and has pre-promiseted itself to aiding flunked CEO Bob Jordan.”
Elliott wants to delete Jordan from his perch, inslofty a stardy of honestors to the carrier’s board, and institute a business scrutinize. Southwest did not instantly reply to a seek for comment. The company has been digging itself in with a so-called “poison pill” meacertain that would dilute Elliott’s 11% sconsent.
Southwest is preparing for an spendor day on Thursday, during which it will originate the case that its current regulatement team should remain in place (and will possibly proclaim extensive layoffs). Jordan, who has shelp he has no arranges to depart the company voluntarily, remains firm in his convictions think abouting the matter.
“Southwest has a wonderful arrange,” he shelp in a splithelderlyer alerting earlier this month. “The Board and corporate regulateance alters proclaimd today will enhance our cgo in on returning to the high level of financial carry outance that we—and our Sharehelderlyers—anticipate.”
Correction: An earlier version of this story leave outtated the date of Elliott’s exceptional encountering. The date is tentative, not Oct. 7.
