Summary Southwest Airlines and Elliott Investment Management are embroiled in a heated boardroom battle over control and direction. Elliott wants to replace a majority of Southwest's board to drive shareholder value, putting airline leadership at risk. Southwest is open to discussions with Elliott but criticizes the public approach, anticipating a showdown in upcoming months.
While bitter boardroom battles are usually played out in the media, they are often decided within the confines of the same boardroom. Southwest Airlines and Elliott Investment Management are still in the early stages of a public slanging match, with the airline releasing a response on Wednesday to the latest set of demands from its unwanted suitor. Trouble is brewing However, in a direct attack on the airline's leadership team, Elliott Investment Management (Elliott) went so far as to name the 10 people it wants to install on the Southwest Board to replace a majority of the current Southwest Board of Directors.
Yesterday, Southwest Airlines returned serve by releasing a statement in response to the demand, criticizing Elliott for its public comments. Southwest Airlines (Southwest) said the Board had consistently sought to sit down with Elliott to engage constructively in the best interests of all shareholders, but Elliott had "dismissed those efforts at every turn." A meeting was agreed for September to find a resolution but the airline is unhappy that its suitor unilaterally announced its intention to r.