Activist shareholder Elliott Investment Management has bought a US$1.9 billion stake in Southwest Airlines and is seeking to force out the CEO of the airline, which has struggled with operational and financial problems.
Shares in the airline rose eight percent in afternoon trading yesterday, on pace for the biggest one-day increase in four years.
In a letter to Southwest's board, the investment firm complained that Southwest's stock price has dropped more than 50 per cent in the last three years.
The firm said Southwest failed to evolve, hurting its ability to compete with other carriers.
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