Elliott now owns enough of Southwest Airlines to call special meeting

Elliott Investment Management now holds 10% of Southwest Airlines' common stock, crossing the threshold that allows the hedge fund to call a special meeting at the carrier, according to a person familiar with the matter. The news comes days before the two sides are scheduled to meet on Sept. 9 to discuss ways to solve problems that have contributed to Southwest's stock losing roughly half its value over the last three years. The hedge fund, one of the world's most powerful activist investors with $70b in assets under management, has demanded that CEO Robert Jordan and Executive Chairman Gary Kelly be ousted. It also laid out plans to nominate 10 directors to the airline's 15-person board.<br/>The hedge fund, which had taken an 11% economic stake through derivatives, converted enough of those holdings into common shares to cross the 10% threshold. Its overall economic stake remains unchanged. A Southwest representative was not immediately available for comment.<br/>Jordan, Southwest's chief executive since 2022, has said he will not resign and has signaled to staff that he and other executives are ready to fight Elliott. Elliott has signaled to other shareholders that it is ready to take next steps, including calling a special meeting, unless the company is willing to discuss changes to its leadership.<br/>