Elliott Wins Allies in Blocking Hyundai Motor's Restructure Plan
- ISS, Glass Lewis recommend voting against group’s merger plan
- Board failed to articulate the business rationale, ISS says
Two influential proxy advisory firms have thrown their support behind Elliott Management Corp.’s opposition of an $8.8 billion deal between two Hyundai Motor Group units, signaling more hurdles for an overhaul that may help the founding family’s patriarch pass control of the South Korean conglomerate to his son.
Glass Lewis & Co. and Institutional Shareholder Services Inc. have come out against the restructuring plan, which calls for the automotive giant to sell some of its businesses to affiliate Hyundai Glovis Co. ISS said in a report Tuesday that although the transactions are compliant with South Korean laws, the deal appears to be unfavorable for Hyundai Mobis Co. shareholders. Both advisers urged investors in the parts maker to vote against the plan.