S.Korea antitrust chief says activist Elliott's demand on Hyundai "inappropriate"

Hyundai Glovis

26/04/2018 11:15

By Hyunjoo Jin and Ju-min Park
    SEOUL, April 26 (Reuters) - South Korea's antitrust chief on
Thursday said U.S. 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.  urn:newsml:reuters.com:*:nL3N1S044X
    Elliott proposed Hyundai Mobis Co Ltd  012330.KS  be
combined with Hyundai Motor Co  005380.KS  to create a holding
company which would also include financial subsidies such as
Hyundai Capital and Hyundai Card Co Ltd  HYMTRH.UL .
    Kim Woo-chan, a finance professor at Korea University
Business School, said Hyundai was unlikely to accept the
proposal on the holding company because it does not involve
Hyundai Glovis Co Ltd  086280.KS , whose biggest shareholder is
Hyundai Motor's vice chairman and heir apparent, Chung Eui-sun. 
    "Elliott's proposal is unrealistic," the professor said.

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Activist fund Elliott ramps up pressure on S.Korean auto giant
Hyundai     urn:newsml:reuters.com:*:nL3N1S044X
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 (Reporting by Hyunjoo Jin and Ju-Min Park
Editing by Christopher Cushing)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))