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Samsung to 'carefully consider' proposal by Elliott

All News 09:38 October 06, 2016

SEOUL, Oct. 6 (Yonhap) -- Samsung Electronics Co. said Thursday it will "carefully consider" a proposal by U.S. hedge fund Elliott Management that urged the South Korean tech giant to split into two companies to increase the value of shareholders.

Elliott, which fought in 2015 against a merger of two Samsung affiliates but lost, urged Samsung to split into holding and operating companies. Elliott urged Samsung to list the operating company on the NASDAQ stock exchange and pay a special dividend.

"Elliott is a shareholder of Samsung Electronics and we will carefully consider the proposal by the shareholder," an official at Samsung said.

Elliott's two units -- Blake Capital and Potter Capital -- made the proposal in a letter sent to Samsung's board.

Blake and Potter hold a 0.62 percent stake in Samsung Electronics.

Buoyed by Elliott's proposal, shares of Samsung Electronics jumped 4.76 percent in early morning trading on Thursday to 1,696,000 won (US$1,521.7).

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