Samsung Targeted by U.S. Activist Elliott Urging Separation
- Elliott entities want Samsung to break in two, Nasdaq listing
- Pressure comes as Samsung struggles with smartphone recall
The Long-Term Impact of the Note 7 Recall
Samsung Electronics Co. is being urged by activist investor Elliott Management Corp. to restructure a business that spans Galaxy smartphones, televisions, semiconductors, screen displays and other consumer electronics.
In a 10-page letter and 31-slide deck released publicly and to Samsung’s board on Wednesday, affiliates of Elliott -- Blake Capital LLC and Potter Capital LLC -- called on the company to streamline and separate into two, conduct a tender, dual-list its resulting operating company on a U.S. exchange such as Nasdaq, pay shareholders a special dividend of 30 trillion Korean won ($27 billion) as well as ongoing regular dividends, and improve governance by adding three independent board members, among other steps.