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Elliott Investment Management has amassed a 10% stake in Southwest Airlines (NYSE:LUV) common shares, allowing the activist to call for a special meeting.
The prominent activist hedge fund, which had taken an 11% economic stake in Southwest (LUV) through derivatives, converted enough of its holdings into common shares to cross the 10% threshold, according to a Reuters report on Monday, which cited a person familiar with the matter. Elliott’s overall economic stake remains unchanged.
The news come as Elliott is scheduled to meet with Southwest Airlines (LUV) on Sept. 9. Elliott last month said it plans to nominate 10 director candidates for the airline’s 15-person board.
Elliott in June confirmed that it had a $2 billion stake in Southwest (LUV) and the activist pushed for the airline to do a business review and believes the airline stock can reach $49 a share. Elliott called for new leadership, including the company’s CEO Bob Jordan and Chairman Gary Kelly.
