Stake ownership threshold of 12.5% without board approval (Il Sole 24 Ore Radiocor) - New York, 03 Jul - Southwest Airlines said it had adopted a shareholder rights plan imposing significant dilution upon anyone buying 12.5% or more of the airline's stock without the prior approval of the Board.

If the threshold is breached, other shareholders will have the right to buy one new Southwest share for every share they currently own at a 50% discount.

The move comes after activist investor Elliott said last month it had built a stake of about 11% in Southwest and had sent a letter to the Board of Directors calling for upgraded leadership at the US carrier and a comprehensive business review.

Southwest said the plan, more commonly known as poison pill, was adopted in part because Elliott had made filings with antitrust authorities that would allow the activist to acquire an even larger stake.

AAA-Sje

(RADIOCOR) 04-07-24 08:01:27 (0076) 5 NNNN