Southwest Airlines CEO Bob Jordan is scrambling to gain investor support while buckling down for a proxy fight as activist hedge fund Elliott Investment seeks to oust him and two-thirds of the board.
Elliott, headed by billionaire investor Paul Singer, has gained a reputation for turning around downtrodden companies with a sometimes aggressive approach. Most recently, the firm was integral inElliott, which revealed its sizable stake in Southwest in June, has blamed the Dallas-based airline’s “decades-old approach” and low stock price on Jordan and Kelly.Southwest Airlines CEO Bob Jordan has been meeting with investors to prepare for a proxy fight led by Elliott Investment.
Elliott said it plans to call a special shareholder meeting soon to vote on board members, so Jordan is likely calling on investors to prepare for the vote.“With regards to the activists, they do have some good points,” Munoz told Reuters. “How do you begin to counteract those points?”