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(Reuters) – Activist investor Elliott Funding Administration on Tuesday escalated its boardroom battle with Southwest Airways (NYSE:), saying it plans to name a particular shareholder assembly as quickly as subsequent week to overtake the airline’s management.
In a letter to shareholders, the hedge fund accused the airline of obstructing a management change.
Elliott now owns sufficient Southwest inventory to name a particular assembly and take the subsequent steps to shake up the board and administration. In August, it recognized 10 director candidates it may nominate to the 15-member board.
Southwest didn’t instantly reply to a request for feedback.
The airline this month stated it could appoint 4 new unbiased administrators within the close to future and would probably embody as much as three candidates proposed by Elliott.
Nonetheless, the corporate expressed confidence in CEO Bob Jordan, saying there was “no higher chief” to efficiently execute its technique to “evolve the airline and improve sustainable shareholder worth.”
Southwest has been struggling to search out its footing after the pandemic, partially as a result of Boeing (NYSE:)’s plane supply delays and industry-wide overcapacity within the home market.
It plans to supply assigned and extra-legroom seats to draw premium vacationers, and begin in a single day flights. It can current particulars to buyers on Sept. 26.
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