Elliott Investment Management on Monday detailed its holdings in Southwest Airlines and reiterated its call for changes to top management at the carrier, according to a U.S. Securities and Exchange Commission filing.
The investment firm in June announced it had taken a stake worth approximately $1.9 billion in Southwest and called for the carrier’s CEO, Bob Jordan, to be replaced.
Monday’s SEC filing noted that Elliott representatives had met with Jordan, Southwest chairman and former CEO Gary Kelly and other members of the board, but did not provide details. In addition, Elliott noted it has “identified and had discussions with a number of highly qualified former airline executives, industry leaders and other qualified persons with relevant experience who are eager to serve on the board,” according to the filing.
As indicated in its July 8 letter to Southwest, Elliott in the SEC filing said it intends to provide shareholders with the opportunity to elect new leadership and board members either by calling a special shareholder meeting or at an annual meeting of shareholders. That same day, Southwest announced the addition of a new board member, and on July 3 adopted a shareholder rights plan, also known as a “poison pill” defense strategy, to deter activist investors or acquirers from gaining a controlling interest.
In addition, Elliott purchased 17.3 million shares of Southwest common stock via 14 transactions between July 11 and Aug. 5, for a total of just under 42 million shares when added to its previous shares, according to the filing.
The investment company now has a 7 percent beneficial ownership of the company, as well as a 4 percent economic exposure in cash derivative agreements, for a total 11 percent economic interest in the carrier, which is the same as it had in June when it made its initial $1.9 billion purchase.
Investors are required to file with the SEC within 10 days after a purchase exceeds a 5 percent ownership stake in a company.
Southwest did not immediately respond to a request for comment.
