Southwest Airlines adopts 'poison pill' after Elliott pushes for ...

July 3 (Reuters) - Southwest Airlines , opens new tab adopted a so-called "poison pill" to deter Elliott Investment Management from raising its stake in the carrier after the activist investor ...

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Southwest Airlines Adopts ’poison Pill’ After Elliott Management ...

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Jul 3, 2024 · Southwest Airlines adopts ’poison pill’ after Elliott Management discloses 11% stake Carrier is seeking to stave off a potential hostile bid from the hedge fund run by Paul Singer

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Southwest Tries To Fend Off Elliott With 'Poison Pill' - Skift

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Jul 3, 2024 · Southwest Airlines approved a 'poison pill' plan to prevent a hostile takeover by Elliott Investment Management. Elliott Investment Management holds an 11% stake in …

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Why did Southwest Airlines adopt a poison pill?

(Reuters) -Southwest Airlines said on Wednesday it had adopted a poison pill after activist investor Elliott Investment Management pushed for changes at the carrier. The company is issuing one right for each share of common stock. ...

What is Southwest Airlines' 'poison pill' shareholder rights plan?

Southwest Airlines on Wednesday implemented a so-called “poison pill” shareholder rights plan to prevent activist Elliott Investment Management from acquiring additional shares. The plan lets other shareholders buy stock at a 50% discount if Elliott's ownership stake rises to 12.5%. ...

Why did southwest's board adopt the 'poison pill' strategy?

Kelly said Southwest's board adopted the poison pill as Elliott could "significantly increase" its current stake of 11%. Under the "poison pill" strategy, used by corporate boards to thwart hostile takeover bids, Southwest will issue one right for each share of common stock. ...

What is Elliott's 'poison pill' plan?

The shareholder plan, a form of a “poison pill” used when publicly traded companies are under fire from disgruntled investors, would make it much more difficult for Elliott to increase its stake that currently stands at about 11% of Southwest shares. ...

What did Elliott say about southwest's stock price?

Elliott, in a letter to Southwest’s board, then said that Southwest’s stock price has dropped more than 50% in the last three years. The firm also criticized the airline, saying it has failed to evolve, hurting its ability to compete with other carriers. ...

Why does Southwest Airlines have a shareholder rights plan?

Southwest Airlines said it has adopted a shareholder rights plan in an effort to prevent Elliott Management from building a bigger stake in the company. Why it matters: The move signals the company is fixing for a fight. Zoom in: Southwest's rights plan triggers when a shareholder's stake exceeds 12.5%. ...