Southwest Faces Activist Pressure as Elliott Takes Nearly $2 Billion Stake
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Elliott Investment Management, an activist fund, has built a nearly $2 billion stake in Southwest Airlines, The Wall Street Journal reported — citing sources.
The stake made Elliott one of Southwest’s largest investors. Southwest has a market cap of approximately $16.6 billion. The carrier did not immediately respond to a request for comment.
Leadership Changes in the Cards for Southwest?In a letter to Southwest's board of directors, Elliott pushed for leadership changes.
"Southwest’s legacy necessitates evolution and change to regain industry leadership for its customers, employees and shareholders," the letter read. "As one of Southwest’s largest investors, we are committed to delivering the necessary leadership changes to achieve this goal."
The letter pointed to how CEO Bob Jordan failed to testify to Congress following Southwest's 2022 holiday meltdown. Instead, chief operating officer Andrew Watterson testified. Ellio
