Deals
Elliott Revives Push to Overhaul Hyundai Motor, Letter Shows
- Billionaire Singer’s fund proposes unit mergers to boost value
- Activist says it’s frustrated by the Korean chaebol’s progress
An employee make notes as he performs final inspections on a Hyundai Motor Co. Genesis luxury sedan on the production line in Ulsan.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
Elliott Management Corp., the activist fund that forced Hyundai Motor Group to scrap an $8.4 billion deal this year, is resuming its push for changes at the South Korean automotive giant.
In a letter to Hyundai, billionaire Paul Singer’s fund called for the merger of some key units to bolster shareholder value and improve the group’s structure. One option would be for car-parts maker Hyundai Mobis Co. to sell its after-sale service business to affiliate Hyundai Motor Co., and then merge what’s left of Mobis with logistics affiliate Hyundai Glovis Co., according to the Aug. 14 letter seen by Bloomberg News.