Southwest Air Adopts Poison Pill to Counter Activist Elliott.

SOUTHWEST Airlines Co. LUV

Southwest Airlines has implemented a shareholder rights plan, commonly known as a "poison pill," in response to activist firm Elliott Investment Management's push for leadership changes and business revamp. The plan aims to prevent Elliott from gaining control of the airline without compensating other shareholders. Southwest stated that Elliott had acquired an economic interest of approximately 11% in the company but had not disclosed its full position. The rights plan allows shareholders to purchase additional Southwest shares at a discounted price if a shareholder or group accumulates 12.5% or more of the company's common stock. Southwest's shares have dropped 24% in the past year, and the company is facing criticism over its financial performance and corporate culture. [Extracted from the article]

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