Southwest Airlines and Elliott Investment Management Negotiations

(Reuters) – Elliott Investment Management and Southwest Airlines (NYSE:LUV) have begun discussions regarding a potential settlement to avoid a proxy fight for control of the airline's board, according to Bloomberg News.

Elliott has proposed a framework that would allow it representation on the Southwest board, but not full control. While the discussions are moving towards a resolution, they are not yet finalized and could still fall through.

Southwest Airlines has declined to comment on the matter, while Elliott did not respond immediately to Reuters' request for comments.

On December 10, Elliott plans to hold a special meeting and will propose the replacement of eight directors to gain control over the board. The airline suggests it has made efforts to reach a resolution and noted that the timing of Elliott's proposed meeting seems designed to "maximize disruption" during one of the year’s busiest travel seasons.

Elliott, owning 10% of Southwest's common stock, has been advocating for months to replace certain board members, oust CEO Bob Jordan, and reassess the company's strategies to improve financial performance and rise share prices.

Last month, Southwest unveiled various initiatives aimed at enhancing profits, such as establishing partnerships, offering vacation packages, and engaging in aircraft sale-leasebacks.

As a significant activist investor, Elliott has a history of pushing for changes in companies like Starbucks (NASDAQ:SBUX), Salesforce (NYSE:CRM), and Twitter.