Elliott Investment took 1.9 billion stake in Southwest Airlines and calls for leadership, board changes
Posted: Jun 10, 2024
- Elliott Investment Management called for leadership and board changes at Southwest Airlines after acquiring a $1.9 billion stake - Southwest Airlines shares were up more than 9% after Elliott disclosed an 11% stake in the company - Elliott criticized Southwest's leadership for disappointing financial performance and called for new leadership from outside the company - Southwest's EBITDAR is expected to be nearly 50% lower than 2018 levels, according to Elliott - Southwest has faced challenges including a systems meltdown and Boeing's ongoing safety crisis - Elliott believes a comprehensive business review can help Southwest's stock hit $49 per share within 12 months - Elliott is pushing for the board's reconstitution with new directors possessing expertise in airlines, customer experience, and technology
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