[THE INVESTOR] Samsung Electronics will reportedly come up with measures next week for the recent requests by Elliott Management that has urged it to refurbish its management structure and increase shareholders’ benefits.
Elliott demanded Samsung split into a listed holding company and listed operating firm, dole out 30 trillion won of dividends to stakeholders, and name at least three board directors at both the holding and operating firms.
Samsung Electronics Vice Chairman Lee Jae-yong |
The US hedge fund, which holds 0.62 percent stake in the tech giant, also asked for the merger between the operating firm and Samsung C&T, a construction business arm and the de facto holding company of Samsung Group.
Local daily Dong-A Ilbo reported on Nov. 25 that Samsung would announce its response to Elliott’s requests at a board meeting on Nov. 29.
The daily said Samsung would not completely accept the demands made by the activist fund, but would suggest some alternative measures to enhance the benefits of shareholders.
Samsung Vice Chairman Lee Jae-yong, who joined the board on Oct. 27, is expected to partake in the board meeting.
By Kim Young-won (wone0102@heraldcorp.com)