UAL - Elliott Management Reportedly Builds $2B Stake In Southwest Airlines Plans To Push For Change | Benzinga
Elliott Investment Management, an activist investor, has built a nearly $2 billion stake in Southwest Airlines Co (NYSE:LUV), and is set to advocate for changes to enhance the airline’s underperforming shares.
What Happened: Elliott Investment Management, a hedge fund led by billionaire Paul Singer, has amassed a stake of almost $2 billion in Southwest Airlines, reported The Wall Street Journal, citing people familiar with the matter. The firm intends to engage with Southwest’s management to address the airline’s underperformance.
Southwest’s share price has plummeted by over 50% in the last three years, closing at $27.75 on Friday, lower than its March 2020 value. This decline contrasts with a roughly 8% increase for Delta Air Lines and an approximately 8% decrease for United Airlines Holdings, over the same period.
The firm is renowned for targeting tech companies and others, pushing for significant changes like management shake-ups and outright sales. Companies where Elliott has ...