Reported 12 months ago
Southwest Airlines Co. has implemented a shareholder rights plan, often referred to as a 'poison pill,' in response to activist firm Elliott Investment Management's stake in the airline. Elliott disclosed a $1.9 billion investment and called for new leadership and business changes at Southwest. The plan aims to prevent Elliott from gaining significant control without compensating other shareholders, issuing one 'right' per share of common stock. Southwest Chairman Gary Kelly stated that the move is to fulfill fiduciary duties to all shareholders. The plan would make it costly for Elliott to increase ownership and dilute its stake.
Source: YAHOO