'Poison Pill' Activated: Southwest Airlines Counters Elliott Investment's Move With Defense Strategy
'Poison Pill' Activated: Southwest Airlines Counters Elliott Investment's Move With Defense Strategy
The rights plan is designed to deter the acquisition of actual, de facto or negative control of Southwest Airlines by any person or group without appropriately compensating its shareholders for that control.Southwest Airlines Company (NYSE:LUV) has implemented a limited-duration shareholder rights plan in response to an 11% stake by Elliott Investment Management.
西南航空公司（纽交所股票代码：LUV）已经采取了一项有限期的股东权益计划，以应对艾略特投资管理公司所持有的11%股份。
Gary Kelly, Executive Chairman of the Board, said, "In light of the potential for Elliott to significantly increase its position in Southwest Airlines, the Board determined that adopting the Rights Plan is prudent to fulfill its fiduciary duties to all Shareholders."
董事会执行主席Gary Kelly表示：“鉴于Elliott可能会大幅增加其在西南航空的持股，董事会决定采取这项权益计划是为了履行其对所有股东的责任。”
The plan takes immediate effect and will last for one year, with any extension requiring shareholder approval.
该计划立即生效，有效期为一年，任何延长均需要股东批准。
The rights plan is designed to deter the acquisition of actual, de facto or negative control of Southwest Airlines by any person or group without appropriately compensating its shareholders for that control.
该权益计划旨在阻止任何人或团体未适当补偿其股东控制西南航空的实际、事实或否定性控制的收购。
Pursuant to the plan, Southwest Airlines is issuing one right for each share of common stock. The rights will generally become exercisable only if any person or group acquires a stake of 12.5% or more.
根据计划，西南航空将为每股普通股发行一份权益。权利通常只有在任何人或团体持有12.5%或以上的股份时才能行使。
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In a release dated June 26, Elliott raised questions on the company's leadership capabilities. "Fundamental leadership change is urgently needed at Southwest. Elliott is committed to delivering the leadership changes that the company requires," it said.
Elliott在6月26日的公告中对公司的领导能力提出了质疑。“西南航空迫切需要进行基本的领导变革。Elliott致力于提供公司所需的领导层变革。”
However, Kelly highlighted today that the company is now open to new ideas.
然而，Kelly今天强调，公司现在对新想法持开放态度。
"Southwest Airlines has made a good faith effort to engage constructively with Elliott Investment Management since its initial investment and remains open to any ideas for lasting value creation," Kelly added.
“自投资以来，西南航空已经尽力与Elliott Investment Management进行建设性的接触，并且仍然对任何产生持续价值创造的想法持开放态度。”Kelly补充道。
Last month, the company lowered its outlook for second-quarter unit revenues.
上个月，该公司下调了第二季度单位收益的预期。
The company said it anticipates a 4% to 4.5% decline in operating revenue per available seat mile (unit revenues), contrasting sharply with the previous expectation of a 1.5% to 3.5% decrease.
公司表示，预计每可用座英里的运营收入（单位收入）将下降4%至4.5%，与之前预期的下降1.5%至3.5%形成鲜明对比。
Southwest Airlines said in an exchange filing that the reduction was driven primarily by the complexities of adapting revenue management to current booking patterns in this dynamic environment.
西南航空在一份文件中说，这次减少主要是由于在这种动态环境下调整收入管理方面的复杂性所致。交易文件减少主要是由于在这种动态环境下调整收入管理方面的复杂性所致。
However, despite lowered expectations, the company continues to expect an all-time quarterly record for operating revenue in the second quarter of 2024.
然而，尽管预期降低，公司仍然期望第二季度创造有史以来的最高季度营业收入记录。
Price Action: LUV shares are trading higher by 0.39% to $28.40 premarket at last check Wednesday.
股票价格行情：周三最后一次检查时，LUV股票交易价格上涨0.39%，至28.40美元。
Image by Around the World Photos via Shutterstock
由Shutterstock提供的Around the World Photos影像。
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