Southwest Air Adopts Poison Pill to Counter Activist Elliott
- Carrier says plan is ‘prudent’ move to protect shareholders
- Airline is fighting activist push for change, new leadership
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Southwest Airlines Co. has adopted a shareholder rights plan to defend against a push for a leadership overhaul by activist firm Elliott Investment Management.
Commonly known as a “poison pill,” the plan aims to dissuade what Southwest called “de facto or negative control” of the airline without compensating other shareholders, the airline said in a statement Wednesday. It comes after Elliott in June disclosed a $1.9 billion stake in the airline and demanded new leadership and a revamp of Southwest’s business to better compete with other carriers.