Elliott's Hyundai Proposal Called Unfair by Korean Regulator

  • Hyundai Motor, Mobis merger would violate law, FTC head says
  • Activist investor Elliott is challenging Hyundai management
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South Korea’s Fair Trade Commission delivered a potential blow to activist fund Elliott Management Corp. in its battle with Hyundai Motor Group management over dueling merger proposals.

The regulator’s chairman, Kim Sang-jo, said the Elliott proposal would violate a ban on non-financial holding companies owning financial affiliates, according to an FTC spokesman. Kim, speaking at a seminar in Seoul Thursday, said Elliott’s plan was “unfair.” Elliott, which has invested more than $1 billion in Hyundai Motor companies, declined to comment.