Sources say talks are underway to resolve the feud between the activist investment firm and carrier.
A Southwest Boeing 737 MAX 8 (Photo: AirlineGeeks | Katie Zera)
The fight between Elliott Investment Management L.P. and Southwest could come to an amicable conclusion, according to a Bloomberg report published Saturday.
The report stated that the two sides have been in talks for a possible policy agreement that would give Elliott representation but not control of the board, according to sources familiar with the matter who asked not to be identified due to the discussions being private.
Southwest and Elliott have been in a dispute since June regarding the carrier’s leadership and poor stock performance over the past few years. It’s estimated that the activist investment firm currently holds over 10% of Southwest’s common stock.
Elliott has sought influence in Southwest through public nominations for its board of directors on its “Stronger Southwest” website. The firm more recently called for a Dec. 10 special meeting to elect these eight nominees as the two sides engaged in a public back and forth on social media during Southwest’s 2024 leadership conference last week.
Elliott has also previously called for Southwest CEO Bob Jordan’s resignation, though the airline’s board has chosen to stand behind him.
Southwest spokesperson Chris Mainz told AirlineGeeks via email that the carrier would not weigh in on the Bloomberg report. AirlineGeeks reached out to Elliott for comment.
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