Elliott Investment Management and Southwest Airlines are in settlement talks to grant Elliott substantial representation on the airline’s board, sources say. Southwest’s board will reduce to 12 members after Chairman Gary Kelly steps down, likely giving Elliott fewer than six board seats. The discussions follow Elliott’s call for a special meeting after acquiring an 11% stake in the airline. Southwest reports its third-quarter earnings on Thursday after recently raising its revenue forecast. Elliott aims to oust CEO Bob Jordan and reshape Southwest’s strategic direction. The talks are still in the early stages.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Elliott Investment Management and Southwest Airlines are in settlement talks to grant
00:06Elliott substantial representation on the airline's board, sources say. Southwest's
00:11board will reduce to 12 members after chairman Gary Kelly steps down, likely giving Elliott
00:15fewer than six board seats. The discussions follow Elliott's call for a special meeting
00:20after acquiring an 11% stake in the airline. Southwest reports its third quarter earnings
00:26on Thursday after recently raising its revenue forecast. Elliott aims to oust CEO Bob Jordan
00:31and reshape Southwest's strategic direction. The talks are still in the early stages.