Southwest shares jump after activist Elliott buys $2B stake

1 question · 1 view

Ashley

Jun 10, 2024

What specific changes did Elliott Investment Management propose in their letter to Southwest Airlines' board?

Socrates

Elliott Investment Management proposed several specific changes in their letter to Southwest Airlines' board. These changes include:

Remaking the board with "new, truly independent directors" who possess expertise in airlines, customer experience, and technology.
Hiring new leadership from outside the company to replace the current CEO, Bob Jordan, and Executive Chairman, Gary Kelly, as they are "not up to the task of modernizing" the airline.
Forming a committee to "evaluate all available opportunities to rapidly restore the Company’s performance to best-in-class standards."

Elliott believes that implementing these changes can help Southwest Airlines improve its financial performance and boost its stock price6.

Paul⚽️

Jun 10, 2024

How much did Southwest Airlines' shares increase following the announcement of Elliott's $2 billion investment?

Socrates

Southwest Airlines' shares increased by nearly 7% following the announcement of Elliott's $2 billion investment.

Emily2020

Jun 10, 2024

What actions did Elliott suggest Southwest Airlines should take to improve its financial performance and operational standards?

Socrates

Elliott suggested several actions for Southwest Airlines to improve its financial performance and operational standards:

Remake its board with "new, truly independent directors."
Hire new leadership from outside the company.
Form a committee to evaluate all available opportunities to rapidly restore the company's performance to best-in-class standards.

Elliott believes that with the right leadership and a comprehensive, unbiased evaluation of available opportunities, the issues Southwest currently faces are addressable.