South Korean pension fund deals blow to Elliott in Hyundai fight
Elliott Management received a potentially fatal blow in its proxy fight to shake up South Korea’s Hyundai Motor Group on Thursday when major shareholder the National Pension Service (NPS) said it would vote down the U.S. hedge fund’s proposals.
Elliott, founded by billionaire Paul Singer, has been battling to get South Korea’s No.2 conglomerate to return excess capital to shareholders and fix governance problems since May last year when it scuppered a restructuring plan. [L4N1RG5BG]
The fund has demanded 7 trillion won ($6.2 billion) in one-off dividend payments and seats on the boards of group companies Hyundai Motor and Hyundai Mobis, in proposals to be put to a shareholder vote on March 22. Hyundai has rejected the proposals.
The NPS holds swing votes in the proxy contest because it is the second-biggest shareholder of Hyundai Motor and Hyundai Mobis, with stakes of 8.7 percent and 9.45 percent respectively.
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