Elliott's new Hyundai push will be hard to ignore

Hyundai Glovis

07/09/2018 04:28

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Robyn Mak
    HONG KONG, Sept 7 (Reuters Breakingviews) - The U.S. hedge
fund has called out a lack of progress in the South Korean
conglomerate's overhaul. That looks justified: it has yet to
come back after investors nixed a $9 bln plan in May. As
regulators step up pressure to reform, Hyundai may not be able
to stall much longer.
    Full view will be published shortly.
    On Twitter https://twitter.com/mak_robyn
    
    CONTEXT NEWS
    - Elliott Management on Sept. 7 released letters sent
privately to the directors of South Korea's Hyundai Mobis,
Hyundai Motor Company, and Kia Motors, expressing concern on the
lack of investor communication by the broader Hyundai Motor
Group conglomerate regarding its business and corporate
restructuring plans.
    - The letters, dated Aug. 14 from affiliate Elliott
Advisors, call for each company to establish a restructuring
review committee, to adopt a simpler corporate structure and to
improve both shareholder returns and board composition.
    - In May, Hyundai Motor Group, South Korea's second-biggest
conglomerate after Samsung, shelved a restructuring plan
following opposition from investors including Elliott. At the
time, the company said it would "supplement and improve" efforts
to streamline its complex ownership structure, reduce regulatory
risk and prepare the group for a switch of management, from
father to son.
    - Shares of Hyundai Motor were flat during late-morning in
Seoul at 134,000 won. Shares of Hyundai Mobis and Kia Motors
were up 3 percent and 2.5 percent respectively on the same
morning.
    - For previous columns by the author, Reuters customers can
click on  MAK/   
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Elliott press release:    https://www.businesswire.com/news/home/20180906005997/en/Elliott-Releases-Letters-Hyundai-Motor-Group
Elliot renews calls for Hyundai Motor revamp – source   
 urn:newsml:reuters.com:*:nL3N1VS4JE
BREAKINGVIEWS - Hyundai U-turn puts Asia investors in higher
gear     urn:newsml:reuters.com:*:nL5N1SS1QV
BREAKINGVIEWS - Hyundai agitator gets overly ambitious   
 urn:newsml:reuters.com:*:nL3N1S119D
BREAKINGVIEWS - Elliott targets right pressure points at Hyundai
    urn:newsml:reuters.com:*:nL4N1RH1H8
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Clara Ferreira Marques and Katrina Hamlin)
 ((robyn.mak@thomsonreuters.com; Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))