Southwest's Stock Rises After Activist Elliott Calls Special Meeting To Elect New Board -- MarketWatch

MarketWatch · 10/14 13:09

Shares of Southwest Airlines Co. (LUV) ascended 1.1% in premarket trading, after activist investor Elliott Investment Management L.P. said it called a special meeting for shareholders, so they can elect "a completely independent" board of directors. Elliott, which owns an 11% stake in the air carrier, said it called the meeting after "exhaustive attempts" to persuade Southwest to implement necessary changes to its corporate governance. "Absent a thorough reconstitution of its Board, the story of Southwest will remain one of empty promises and unfulfilled potential," Elliott Partner John Pike and Portfolio Manager Bobby Xu said in a statement. Elliott's latest move comes after hedge fund has criticized Southwest's management as being "inadequate" and has called for a refreshment of the airline's board. Southwest's stock has gained 6% year to date through Friday, while the U.S. Global Jets ETF (JETS) has advanced 10.7% and the S&P 500 (LUV) has rallied 21.9%.

-Tomi Kilgore

For more from MarketWatch: http://www.marketwatch.com/newsviewer

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 14, 2024 09:09 ET (13:09 GMT)