Elliott and the Art of Nonsense Hyundai Numbers
The chaebol is using tenuous assumptions to justify an ugly deal.
Beauty is often in the eye of the beholder where valuations are concerned.
Photographer: Marco Piunti/iStockphoto/Getty Images
More often than not, beauty is in the eye of the beholder where valuations are concerned.
As Paul Singer’s activist investment firm Elliot Management Corp. circles Hyundai Motor Group, proxy advisory firms Glass Lewis & Co. and Institutional Shareholder Services Inc. have urged investors to vote against a restructuring plan put forward by the South Korean conglomerate. Glass Lewis said a planned spin-off and merger between two Hyundai units has “questionable business logic,” undervalues assets, and appears designed to benefit the founding family. ISS said the board had failed to articulate a clear business rationale for the transaction.