ELLIOTT SEEKS 10 OF THE 15 BOARD SEATS AT SOUTHWEST IN BID TO STRENGTHEN THE AIRLINE'S PERFORMANCE

Elliott Investment Management is launching a proxy fight with Southwest Airlines and plans to nominate 10 candidates for the 15-member board of an the airline where performance has lagged behind competitors.

The hedge fund said late Tuesday that naming a slate of director candidates marks “a key step toward implementing the urgent changes needed at Southwest.”

Southwest said that it has repeatedly sought to engage Elliott to address its concerns, but those attempts have been rebuffed.

“After Elliott recently agreed to a meeting with Southwest Airlines in early September to discuss a collaborative resolution, including continuing significant Board refreshment and other governance enhancements, Elliott unilaterally decided instead to publicly announce its intention to replace a majority of Southwest Airlines’ Board,” Southwest said in a prepared statement.

Shares of Southwest Airlines Co. fell less than 1% in midday trading Wednesday.