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
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(END) Dow Jones Newswires
October 14, 2024 09:09 ET (13:09 GMT)
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