Elliott Management steps up pressure on Hyundai Motor

Bloomberg

Elliott Management Corp., which earlier this month announced it bought about $1 billion in shares of units of Hyundai Motor Group, stepped up its pressure on the South Korean conglomerate by making demands ranging from higher dividends to restructuring the group under a holding company.
Elliott’s proposals, which include combining Hyundai Motor Co. with Hyundai Mobis Co. and raising dividends to as much as half of net income, have been relayed to the board of Hyundai Motor Group, it said. Group representatives weren’t immediately available to comment.
Other demands include: Reduction of excess cash on balance sheet at Mobis and Hyundai Motor, cancellation of all existing and future treasury shares and addition of three independent board members Introduction of measures to bring group governance to be in line with global standards. The demands signal the beginning of what could evolve into a contest pitting one of the world’s most tenacious activist investors against Korea’s second-largest business empire.