Elliott Management Reportedly Builds $2B Stake In Southwest Airlines, Plans To Push For Change
Elliott Management Reportedly Builds $2B Stake In Southwest Airlines, Plans To Push For Change
Elliott Investment Management, an activist investor, has built a nearly $2 billion stake in Southwest Airlines Co (NYSE:LUV), and is set to advocate for changes to enhance the airline's underperforming shares.
激進的投資者Elliott Investment Management已經在Southwest Airlines (NYSE:LUV)中建立了近20億美元的股份，並打算通過改變提高航空公司的表現。
What Happened: Elliott Investment Management, a hedge fund led by billionaire Paul Singer, has amassed a stake of almost $2 billion in Southwest Airlines, reported The Wall Street Journal, citing people familiar with the matter. The firm intends to engage with Southwest's management to address the airline's underperformance.
Elliott Investment Management是由億萬富翁保羅·辛格領導的對沖基金，已經在Southwest Airlines建立了近20億美元的股份，據知情人士稱。該公司打算與Southwest的管理層接觸，以解決航空公司的業績問題。
Southwest's share price has plummeted by over 50% in the last three years, closing at $27.75 on Friday, lower than its March 2020 value. This decline contrasts with a roughly 8% increase for Delta Air Lines and an approximately 8% decrease for United Airlines Holdings, over the same period.
在過去的三年中，Southwest的股價已經下跌了超過50%，上週五收盤價爲27.75美元，低於2020年3月份的價值。這種下跌與達美航空的股價約上漲8%和聯合大陸航空約下跌8%的情況形成了對比。
The firm is renowned for targeting tech companies and others, pushing for significant changes like management shake-ups and outright sales. Companies where Elliott has recently built positions have often ended up replacing their CEOs, such as the wireless tower owner Crown Castle, NRG Energy, and Goodyear Tire & Rubber.
該公司以瞄準科技公司等而著名，推動進行重大變革，例如管理層改組和直接銷售等。最近Elliott建立了位置的公司往往會因此更換CEO，例如無線塔所有者冠城國際，nrg energy和固特異輪胎公司。
Southwest Airlines is at a critical juncture. Initially a scrappy Texas upstart in the 1970s, it grew into the largest domestic airline by passengers by undercutting competitors' fares and stimulating demand for air travel. The Dallas-based carrier kept costs low by flying only Boeing 737 planes, earning a reputation for exceptional service.
Southwest Airlines正處於一個關鍵的時刻。一開始是上世紀70年代的德克薩斯小企業，通過降低競爭對手的票價和刺激乘機需求，成長爲最大的國內客運航空公司。這家總部位於達拉斯的航空公司僅飛波音737型飛機，成爲服務卓越的代名詞。
However, the formula that generated 47 consecutive years of profits before the COVID-19 pandemic is showing signs of strain. The airline's consumer-friendly reputation has also suffered, especially after the 2022 holiday meltdown caused by technology systems failing to manage a large-scale disruption.
然而，在COVID-19大流行之前連續47年盈利的公式正在顯露出疲勞的跡象。航空公司消費者友好的聲譽也受到了破壞，特別是2022年假期大規模停飛問題後，技術系統的失靈使得其進一步受到了影響。
Southwest Airlines and Elliott Investment Management did not immediately respond to Benzinga's request for comment.
Southwest Airlines和Elliott Investment Management還沒有立即回應Benzinga的要求置評。
Why It Matters: The airline industry has been facing numerous challenges, including the impact of the COVID-19 pandemic, slow refund processes, and intense competition. Southwest's financial struggles have been further exacerbated by Boeing's delivery delays and technology system failures.
航空業面臨着多種挑戰，包括COVID-19大流行的影響、緩慢的退款過程和激烈的競爭。Southwest的財務困境還因爲波音交付延遲和技術系統失靈而進一步惡化。
With Elliott's significant stake and a history of driving change in underperforming companies, Southwest may be on the cusp of a significant transformation.
隨着Elliott持有的重大股份和推動不良公司變革的歷史，Southwest可能即將迎來重大的轉型。
Recent investments by Elliott include global tech investor SoftBank, chip maker Texas Instruments, and air conditioning and building-security supplier Johnson Controls International.
Elliott最近的投資包括全球科技投資者SoftBank、芯片製造商德州儀器和空調和建築安防供應商江森自控。
The busy season for activist investors has largely subsided after many public companies held their annual shareholder meetings earlier in the spring. This year's major battles included Nelson Peltz's proxy fight at Disney, where his firm Trian Partners failed to secure two seats on the media giant's board, and Ancora Holdings' campaign at railroad operator Norfolk Southern, where it successfully obtained three seats.
許多上市公司早在春季已經召開了股東大會之後，激進投資者的繁忙季節基本結束。今年的主要鬥爭包括納爾遜·佩爾茲在迪士尼的代理人之爭，在這場戰鬥中，他的公司Trian Partners未能在這家媒體巨頭的董事會上獲得兩個席位，以及Ancora控股公司在鐵路運營商諾福克南方的運動中，成功獲得三個席位。
Image Via Shutterstock
圖片來自Shutterstock。
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
本報道使用Benzinga Neuro生成，並由Kaustubh Bagalkote
譯文內容由第三人軟體翻譯。