DALLAS — Activist shareholder Elliott Investment Management has bought a $1.9 billion stake in Southwest Airlines and is seeking to force out the CEO of the airline, which has struggled with operational and financial problems.In a letter to Southwest's board, the investment firm complained that Southwest's stock price has dropped more than 50% in the last three years.
Elliott said that CEO Robert Jordan “has delivered unacceptable financial and operational performance quarter after quarter." It said Jordan and former CEO Gary Kelly, now the airline's executive chairman, "are not up to the task of modernizing Southwest.” “The Southwest Board of Directors is confident in our CEO and management’s ability to execute against the company’s strategic plan to drive long-term value for all shareholders, safely and reliably serve our customers and deliver on our commitments to all of our stakeholders,” a spokesperson said in a statement.Many investors watch Warren Buffett's trades, hoping to duplicate the success of the so-called "Oracle of Omaha.
-- Prime Minister Justin Trudeau’s government will call for a vote this week on a planned hike in the capital-gains tax inclusion rate, a measure that would raise billions in additional government revenue and has attracted the ire of Canada’s business community.