NEW YORK: Rakesh Gangwal, who co-founded IndiGo, purchased 3.6 million shares of Southwest on Sept 30 and Oct 1 according to SEC filings. He paid between $29 and $30 a share – taking the investment value to over $100 million. Gangwal said he made the purchases as soon as the so-called trading window – when directors and other insiders are permitted to buy and sell the stock – opened.
Southwest put Gangwal on the board in July as activist investor Elliott Investment Management increased pressure on the carrier, demanding leadership and strategy changes to improve financial performance.The company announced a board overhaul and other changes last month.
Last month, Southwest said executive chairman Gary Kelly will step down and six other directors will retire from its 15-member board. Elliott has held firm to demands for more changes in the top ranks, including the ouster of CEO Bob Jordan. Last week, it said it plans to request a special shareholder meeting to press for those changes.
Gangwal told Reuters on Wednesday that more upheaval in the executive suite and boardroom would hurt shareholders.
