Southwest Tries to Fend Off Elliott With 'Poison Pill'
Skift Take
Southwest is adopting a shareholder rights plan — known as a “poison pill” — to fend off Elliott from attaining a controlling stake in the company.
Southwest Airlines’ board of directors approved a limited-duration shareholder rights plan in response to Elliott Investment Management’s 11% stake in the company.
The carrier said the plan — known as a “poison pill” — was designed to deter any person or group from acquiring a controlling stake in the company without properly compensating other shareholders. The plan will expire in one year, with any extension requiring shareholder approval.
The plan also only goes into effect if any person or group acquires at least 12.5% of the company, according to a regulatory filing Southwest posted Wednesday morning.
Southwest said Elliot
