Last week, major New York-based hedge fund Elliott Associates publicly came out with a proposal that it wants Samsung Electronics to be split up into separate holding and operating companies and that a one-time dividend amounting to $27 billion should also be paid to shareholders. Elliott happens to own 0.62 percent of the behemoth that is Samsung Electronics and while the company has said it.
Samsung Electronics responded warily Thursday to a proposal by US hedge fund Elliott Management to split the South Korean tech giant into two companies but markets cheered the plan, sending its shares to a record high.
Samsung’s handling of the Galaxy Note 7 debacle revives memories of the company’s recall of about 150,000 washing machines in Australia.
Hedge fund Elliott Management is pressing for Samsung Electronics, the maker of the Galaxy Note smartphone, to list its shares on the Nasdaq.
Samsung Electronics expects a total hit in operating profit of about 3.5 trillion Korean won ($3.1 billion) in the final quarter of this year and first quarter of next year due to the discontinuation of its Galaxy Note 7 smartphone.