By Dean Seal
Southwest Airlines said it has reached a deal with Elliott Investment Management that will allow the activist investor to hold a bigger chunk of the airline.
The budget carrier said Wednesday that it has amended its cooperation agreement with Elliott to allow the firm and its affiliates to own up to 19.9% of Southwest's outstanding stock, up from a previous limit of 14.9%.
The Elliott group is still restricted from owning more than 12.49% of the company until the 2026 annual meeting of shareholders in April of next year, according to a regulatory filing.
The change comes days after Southwest said it would conduct its first-ever mass layoff by slashing 15% of its corporate workforce.
The cost-cutting maneuver was the airline's latest strategy shift since its feud with Elliott over the company's direction ended in a truce last fall that gave Elliott a significant presence on Southwest's board.
The filing separately states that Ryan Green, Southwest's chief transformation officer, intends to step down on April 1.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 19, 2025 08:50 ET (13:50 GMT)
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