Share to Facebook Share to Twitter Share to Linkedin Southwest Airlines is heading for a proxy fight with the activist firm Elliott Investment Management. (Photo by KAMIL KRZACZYNSKI) A much-anticipated boardroom battle is afoot at Southwest Airlines. Elliott Investment Management, the activist investment fund owned by billionaire hedge fund magnate Paul Singer , announced its intention to “move forward expeditiously” to replace as many as 10 directors on the Southwest Airlines board as it ratchets up its months-long campaign to shake up the Dallas-based carrier’s leadership and business model.
In June, the activist fund announced it had taken a $1.9 billion stake in Southwest, representing an economic interest of roughly 11% of the airline. But only 8.
2% is in common stock, according to an amended Schedule 13D filed Tuesday with the SEC. Elliott plans to call a special meeting of shareholders but, to do that, it needs to own at least 10% of the company’s stock, according to Southwest’s bylaws. “Elliott is making clear that it is moving quickly, at a brisk pace, to both put forward qualified director candidates and to amass 10% of the common stock,” says Keith Gottfried, CEO of Gottfried Shareholder Advisory , a shareholder activism defense firm.
“It is positioning itself to request a special meeting to replace directors, possibly in advance of Southwest’s investor day in September.” “Today’s announcement represents a key step toward implementing the u.