Reported 12 months ago
Southwest Airlines has implemented a 'poison pill' strategy in response to activist investor Elliott Investment Management acquiring a significant stake in the company. The shareholder rights plan, effective immediately and lasting a year, allows existing shareholders to purchase shares at a discounted rate to deter an external takeover. Southwest took this action following concerns about Elliott's 11% stake and potential for increased control. Elliott, holding $1.9 billion worth of Southwest shares, aims to replace the CEO and make changes to improve the airline's performance and competitiveness.
Source: YAHOO