Elliott Investment Management And Southwest Airlines In Talks For Settlement

Elliott Investment Management and Southwest Airlines have been discussing a settlement that would give the activist significant representation on the airline's board.Southwest Airlines

have been discussing a settlement that would give the activist investor significant representation on the airline's board, according to people familiar with the matter.are predicated on a deal that would give Elliott less than full board control, said the people, who asked not to be named because the negotiations are confidential. Southwest's board will drop to 12 members after Chairman Gary Kelly steps down next year, meaning Elliott would likely end up wither fewer than six selections.

The talks are in early stages, and it's possible that no deal could be reached, some sources said. Bloomberg News was first to report on the preliminary settlement discussions.On Monday, Elliott called for a special meeting at the airline, months after the activist revealed it had built an 11% stake at the company. Elliott has said it's looking to oust CEO Bob Jordan and overhaul the airline's strategic planning.

Southwest has stuck by Jordan, who joined the Dallas-based carrier almost four decades ago and is now tasked with major changes to the airline's business model to help drum up revenue and better compete with rivals. Over the summer, Southwest said it plans to ditch its open-seating model and offer extra legroom seats. Jordan said consumer tastes have changed in recent years, setting the stage for the airline's biggest shift to its business model in 50 years.At an investor event last month, Southwest laid out a three-year plan that Jordan claimed would add $4 billion to earnings before interest and taxes in 2027.The airline also said it authorized a $2.5 billionD.E.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Elliott Investment Management Seeks Board Representation in Southwest Airlines SettlementActivist investor Elliott Investment Management and Southwest Airlines are reportedly discussing a settlement that would grant Elliott significant representation on the airline's board. The talks, which are in early stages, suggest Elliott may secure fewer than six board seats due to the upcoming reduction of Southwest's board size.
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »

Elliott Investment group calls for special meeting at Southwest AirlinesElliott Investment Management is following through on its word to make big changes at the top for Southwest Airlines.
Source: FOX4 - 🏆 289. / 63 Read more »