A Southwest Airways Boeing 737 jet departs from San Diego Worldwide Airport en path to St. Louis on August 24, 2024 in San Diego, California.
Kevin Carter | Getty Photographs
Activist investor Elliott Funding Administration and Southwest Airways are near a settlement deal that might give Elliott a large illustration on the corporate’s board, in accordance with an individual aware of the matter.
The settlement may very well be introduced as quickly as Thursday, mentioned the particular person. Spokespeople for Elliott and Southwest declined remark.
Elliott and Southwest as just lately as final week had been girding up for a proxy battle. The activist had been searching for to put in 10 new administrators to the service’s board and had known as for a particular assembly in December to elect them. Elliott’s marketing campaign hinged largely on the elimination of Government Chairman Gary Kelly and CEO Bob Jordan.
Elliott had mentioned Government Chairman Gary Kelly and CEO Bob Jordan, each three-decade Southwest veterans, must be changed. In September, the corporate mentioned Kelly would step down subsequent spring, however the airline’s board has staunchly backed Jordan.
CNBC couldn’t be taught whether or not Jordan would stay as chief government below the phrases of the potential deal, which was reported earlier by Bloomberg.
The 2 sides have gone backwards and forwards with potential settlement provides over the previous few months, Southwest has beforehand mentioned, however till Saturday, when information broke {that a} settlement deal was within the offing, there was no indication {that a} deal was doable.
— CNBC’s Leslie Josephs contributed to this report.
