Southwest Airlines adopts a "poison pill plan" to prevent hostile takeovers by radical investors.

On July 3rd, Golonghui reported that after activist investor Elliott Investment Management pushed for change in the company, Southwest Airlines decided to adopt a "poison pill plan." The company issued one right for each ordinary share. These rights will be traded with the ordinary shares of the airline. If any individual or group acquires more than 12.5% of the company's shares, they can exercise these rights. The shareholder rights plan is called a "poison pill" and is used by corporate boards of directors to prevent hostile takeover bids. Southwest Airlines' CEO Kelly issued a statement since the initial investment.

Gelonghui Finance2minutes ago

Express News | Southwest Airlines Co: Issuing One Right for Each Share of Common Stock

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Express News | Southwest Airlines: Rights to Initially Trade With Common Stock, Become Exercisable Only IF Party Buys 12.5% or More of Co's Outstanding Common Stock

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Southwest Airlines Adopts Poison Pill After Elliott Pushes for Changes

Yahoo Finance18:54

Express News | Southwest Airlines Co: Adopted Rights Plan in Response Significant Accumulation by Elliott Investment Management

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Express News | Southwest Airlines Co - Rights Plan Is Effective Immediately and Will Expire in One Year

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