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South Korea: Antitrust chief says activist Elliott’s demand on Hyundai “inappropriate

By  |  April 26, 2018

On Thursday, April 26, South Korea’s antitrust chief said US activist fund Elliott Management’s proposal for Hyundai Motor Group to adopt a holding company structure is “inappropriate” and, if implemented, would be in violation of antitrust law.

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    The proposal includes Hyundai’s financial subsidiaries falling under the ownership of a non-financial entity, which is prohibited by law, Yoon Soo-hyun, a spokesman at the Korea Fair Trade Commission, said in confirmation of the commissioner’s comments made at an event in Seoul.

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    Elliott on Monday said the restructuring plan of South Korea’s second-largest conglomerate was insufficient. Instead, it called on the autos-to-steel group to introduce a holding company structure, boost shareholder returns and appoint more independent board members.

    Elliott proposed Hyundai Mobis be combined with Hyundai Motor to create a holding company which would also include financial subsidies such as Hyundai Capital and Hyundai Card.

    Full Content: Reuters

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