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Samsung’s Stock Hits Highest in 40 Years as It Heads for a Split

  • Elliott units call Samsung plan ‘constructive initial step’
  • Activist anticipates ‘more meaningful changes’ after review
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Samsung Electronics Is Heading for a Split

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Samsung Electronics Co. didn’t quite come out and actually say it, but South Korea’s most valuable company is probably going to split as soon as next year.

Samsung’s stock reached its highest since going public in 1975 after saying it’s looking at a plan to turn itself into a holding company, and would have more to disclose on the issue at a later date. The idea, unveiled Tuesday, was presented as a way to improve shareholder value and address calls from Elliott Management Corp. for more responsive management. Perhaps the most important reason for a breakup, however, is that Samsung and the founding Lee family would also see big benefits from such a split, with its shares surging to a record Wednesday.