Samsung Electronics is considering a possible split into two companies, under talks with its shareholder Elliott Management. The company and Elliott have been talking with investors in the US and Korea to sound out opinions on the activist investor’s proposals to overhaul Samsung, people familiar with the matter told Bloomberg.
Shareholders increasingly see the need for change at Samsung after the costly battery crisis with the Note 7 smartphone as well as the possible implication of Samsung executives in South Korea's widening political scandal. Elliott has proposed that Samsung improve its corporate governance by adding three independent board members, list shares on a US exchange, pay shareholders a special dividend of KRW 30 trillion (USD 26 billion) and separate into an operating company and a holding company.
Investors are beginning to express support for Elliott’s ideas not just in private meetings but also in public, the report said, citing Daniel O’Keefe, managing director of Artisan Partners, which holds over 1 million Samsung shares. Samsung said it plans to respond to Elliott’s proposals by the end of this month
