Southwest Airlines adopts a "poison pill" shareholder rights plan to counter Elliott Investment Management's significant stake.
Southwest Airlines has adopted a "poison pill" shareholder rights plan after activist investor Elliott Investment Management took a significant stake in the company. The plan allows existing shareholders to purchase shares at a discounted rate if an outside entity acquires 12.5% or more of the airline's common stock, in response to Elliott's approximately 11% stake and concerns about the investor potentially increasing its position. Southwest remains open to engaging with Elliott to create lasting value and remains confident in its CEO and management team.
July 03, 2024
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