Activist investor Elliott Management is preparing to launch a proxy fight at Southwest Airlines , and intends to nominate as many as 10 directors to the company's 15-person board, according to a person familiar with the matter.
Elliott plans to call a special meeting, rather than waiting for the company's annual shareholder meeting, the person said.
Elliott needs to own at least 10% of the company in order to call a special meeting, under Southwest's bylaws, a threshold that it will likely cross soon.
Southwest rebuffed those requests, and CEO Jordan since told CNBC that Elliott's engagement with the company had not been meaningful.
The activist had already intimated that it would seek to call for a special meeting in its second letter to Southwest's board.
Persons:
Elliott, Southwest's, Bob Jordan, Gary Kelly, Jordan, Brian Niccol
Organizations:
Elliott Management, Southwest Airlines, CNBC, Starbucks, Southwest, Budget, Spirit Airlines, Wall Street
Locations:
U.S