Southwest, Elliott in Settlement Talks to Avoid Proxy Fight

Southwest Airlines Co. and Elliott Investment Management LP are in discussions to reach a settlement that would prevent a proxy fight over the airline's board control. Elliott, an activist investor with an 11% stake in Southwest, has been pushing for significant board representation and strategic changes, including the potential ousting of CEO Bob Jordan. The proposed deal would allow Elliott representation without granting full control, as Southwest's board will reduce to 12 members next year. These discussions follow Elliott's call for a special shareholder meeting next year to vote on new board directors. Despite the progress, the talks are not finalized and could still collapse. Both Southwest and Elliott have declined to comment on the ongoing negotiations.