Southwest Air adopts 'poison pill' as activist investor Elliott takes significant stake in company

Southwest Airlines has adopted a ‘poison pill’ following activist investor Elliott Investment Management taking a significant stake in the company. The airline said Wednesday that the shareholder rights plan is effective immediately and expires in a year. Southwest shareholders would need to approve any extension. Last month Elliott said it bought a $1.9 billion stake in the airline, which has struggled with operational and financial problems, and said it wanted to force out CEO Robert Jordan and change the board of directors.