Elliott Management to Request Southwest Special Meeting as Early as Next Week

Elliott Management announced on Tuesday that it plans to request a special meeting with Southwest Airlines as early as next week. The activist investor seeks to initiate a leadership change amid concerns regarding the airline’s strategy for revitalizing its business.

Southwest is expected to present its performance improvement plan at an investor meeting scheduled for May 25. However, Elliott Management has criticized the airline’s independent approach, arguing that collaborative efforts are necessary for recovery, which they believe requires a change in leadership.

Holding an 11% stake in Southwest, Elliott intends to formally call for a special meeting in the coming weeks, possibly next week.

“We believe that competent new leaders, working through a deliberate and thoughtful process, should chart the course forward for Southwest,” stated Elliott partner John Pike and portfolio manager Bobby Xu in a letter to shareholders.

Elliott also cautioned shareholders that the airline is attempting to restrict the number of shareholders eligible to vote through a practice known as a “false record date.” The firm encourages shareholders to resist these “defensive actions.”

The next “false record date” set by Southwest is October 7.

“Elliott strongly urged all Southwest shareholders – especially those who engage in share lending or authorize their brokers to lend shares – to work with their banks and brokers promptly to ensure they can vote all their Southwest shares by no later than October 7,” the activist investor advised.

In recent trading, Southwest Airlines’ stock increased by nearly 1%.