Elliott Management scores win as Hyundai scraps deal worth almost $9bn
Seoul — Hyundai shelved a controversial $8.8bn deal between two units after activist hedge fund Elliott Management balked at the proposal on grounds that it would shortchange minority investors. On Monday, Hyundai Mobis decided to withdraw the proposal, CEO Lim Young-deuk said in a letter to investors. The company, which had originally scheduled to put the matter to a shareholder vote on May 29, will seek approval for an updated restructuring plan at a later date, he wrote. "Our communications with our shareholders and the market regarding the need for the restructuring were insufficient," Lim said. "Hyundai Mobis will withdraw the proposal in its current form in order to have an opportunity to supplement and improve the restructuring plan." Billionaire Paul Singer’s Elliott, which bought more than $1bn in shares of Hyundai units, has been leading a campaign since April to oppose the transaction, questioning the deal’s logic and voicing concerns that minority shareholders would lose...
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