Southwest adopts limited-duration shareholder rights plan

Southwest announced that it has approved the adoption of a limited-duration shareholder rights plan. The rights plan is effective immediately and will expire in one year. Any extension would be subject to prior approval by the company’s shareholders. The board, in consultation with its advisors, adopted the rights plan in response to the public announcement by Elliott Investment that it had accumulated a significant economic interest in Southwest Airlines common stock. In adopting the rights plan, the board considered, among other things, that Elliott: announced that it had built an approximately 11% economic interest in Southwest Airlines; has not reported its full purported position in Southwest Airlines on any filings with the SEC and has made regulatory filings with U.S. antitrust authorities that would provide it the flexibility to acquire a significantly greater percentage of Southwest Airlines’ voting power across two of its funds starting as early as July 11.