Samsung Shareholders Could Prompt Business Split

On Wednesday morning, Elliott released a letter to Samsung's board of directors that advocated for a simplification of Samsung's corporate structure, an increase in the company's return of capital to shareholders, and a listing of its electronics business on the Nasdaq stock exchange. These recommendations, Elliott said, could bridge a discount attached to Samsung's shares due to its poor corporate governance and unwieldy conglomerate structure.

Samsung shareholders could prompt business split

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In an ambitious proposal for the family-controlled company, Elliott is calling for a de-merger of Samsung Electronics from Samsung's wider corporate holdings and a listing of the business on public stock markets. That split will create a holding company containing Samsung's treasury shareholding and a Samsung Electronics operating company. Elliott then advocates that the Samsung 'holdco' could purchase a portion of the operating company through a tender offer.

For AT&T and its shareholders, this transaction provides an opportunity to unlock value in its media assets and to better position the media business to take advantage of the attractive DTC trends in the industry. Additionally, the transaction allows the company to better capitalize on the longer-term demand for connectivity: