Hedge fund Elliott says Hyundai has too much capital
Activist investor is seeking return of excess capital to shareholders
Elliott Management owns $1.5 billion (€1.33 billion) worth of shares in three Hyundai group companies. Photograph: Andrey Rudakov/Bloomberg
In a letter to the directors of the group, the fund called for return of excess capital to shareholders, a review of any and all non-core assets and addition of new independent directors to its respective boards.
The tussle between the hedge fund and the South Korean conglomerate over a potential revamp has been going on for long.
The fund had in September called for a committee to review its restructuring proposals with other investors and experts, which was rejected by the board.
Elliott said on Tuesday that non-conforming reporting of cash flows is distorting and hiding the group’s true income from operations.
Elliott is an activist investment company that provides portfolio management and consulting services. It currently has about $18.4 billion of assets under management. The hedge fund has large holdings in a range of companies including Dell, Telecom Italia and Sanofi. – Reuters