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Samsung Gives Activist Elliott Concessions But Not Restructuring

  • Samsung says it’s not desirable to convert to holding company
  • Elliott welcomes Samsung’s plan to cancel treasury shares
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Samsung's First-Quarter Profit Tops Estimates

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Samsung Electronics Co. turned down activist invest Paul Elliott Singer’s push for a corporate restructuring, offering instead to reward shareholders by paying its first-ever quarterly dividend and canceling tens of billions of dollars in treasury shares amid a surge in profits.

The Suwon, South Korea-based firm said Thursday that transforming into a holding company, as Singer advocated, wouldn’t help Samsung’s competitiveness and could face regulatory hurdles. The company also reported first quarter net income of 7.49 trillion won ($6.7 billion), the highest level in almost four years and far ahead of the 6.77 trillion won expected by analysts. Shares climbed to a record high.