Southwest Airlines Co (NYSE:LUV) shares moved higher on reports Elliot Management has secured a 10% stake in the airline, giving the investment firm the power to call a special meeting.
A person familiar with the matter told Reuters that the hedge fund, which held an 11% economic stake through derivatives, converted enough of its holdings into common shares to surpass the 10% threshold.
Its overall economic stake is unchanged, the publication noted.
Southwest and Elliot Management are set to meet on September 9 to talk about ways to address challenges facing the carrier which have seen it lose about half of its value in the last three years.
Elliot has previously demanded that Southwest CEO Robert Jordan and executive chairman Gary Kelly step down and outlined plans to nominate 10 directors to its 15-seat board.
Jordan, who has held the top job at Southwest since 2022, has said he will not resign and has signalled that he and other executives are prepared to fight Elliot.
Shares of Southwest Airlines were up 2.9% at $29.75 shortly before noon on Tuesday.