A feud between Southwest Airlines and activist investor Elliott Investment Management appears to be close to a resolution, according to Bloomberg.
The news outlet reported on October 24, 2024, that sources close to Southwest and Elliot are working on a proposal that would see candidates backed by the investor joining the airline’s board.
However, crucially Southwest would still hold the majority of power if both sides agree to the settlement.
Sources indicated to Bloomberg that a deal could be announced as early as October 24, 2024, though nothing has been finalized yet.
In plans published by Elliot on October 14, 2024, the investor demanded the removal of eight Southwest directors and the election of eight of its own candidates.
The investor also called for a special meeting so that shareholders “voices can be heard” and a new slate of directors approved.
“Southwest’s shareholders cannot afford to see – yet again – today’s new initiatives turn into tomorrow’s broken promises,” Elliot stated.
In response, Southwest said that the meeting was “unnecessary and inappropriate considering the extreme nature of Elliott’s demands” and that the investor was “entrenched in demanding control of board.”
Elliott has actively and publicly criticized the running of Southwest since Summer 2024 and made multiple calls for the airline’s CEO Bob Jordan to be replaced.
It is not known if the settlement includes the removal of Jordan as the head of Southwest.