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.
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.
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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