U.S. hedge fund Elliott Management said Wednesday that Samsung Electronics' decision to consider creating a holding company and boost dividend payouts was a constructive initial step.
Its reaction came a day after Samsung said it will consider creating a holding company structure and increasing dividends for shareholders. Elliott owns a 0.62 percent stake in Samsung through its two entities.
"We view the plan outlined by Samsung to be a constructive initial step. We anticipate more meaningful changes following the company's corporate structure review," the two Elliott entities — Blake Capital and Potter Capital — said in a statement.
Elliott called for Samsung to split itself into two units — a holding company and an operating company. Elliot also demanded Samsung list the operating company on the U.S. stock market.
Elliott has called for Samsung to improve governance structure and shareholder value.
Samsung said it needs at least six months to complete the review of a holding company structure.
Its reaction came a day after Samsung said it will consider creating a holding company structure and increasing dividends for shareholders. Elliott owns a 0.62 percent stake in Samsung through its two entities.
"We view the plan outlined by Samsung to be a constructive initial step. We anticipate more meaningful changes following the company's corporate structure review," the two Elliott entities — Blake Capital and Potter Capital — said in a statement.
Elliott called for Samsung to split itself into two units — a holding company and an operating company. Elliot also demanded Samsung list the operating company on the U.S. stock market.
Elliott has called for Samsung to improve governance structure and shareholder value.
Samsung said it needs at least six months to complete the review of a holding company structure.
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