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© gleighly dreamstime.com Electronics Production | November 28, 2016

Samsung might split into two

The South Korean company is considering to spilt the company into two – one holding vehicle for ownership purposes and an operating company.
U.S. activist hedge fund Elliott Management – which owns 0.6% of Samsung – proposed that Samsung should divide itself into a holding vehicle for ownership purposes and an operating company, as well as pay out USD 26 billion in a special dividend, according to a Reuters report.

Reuters is citing the Seoul Economic Daily who got the information from unnamed sources. There has been talk amongst media and analysts before regarding a potential split of the company. Such a move could possibly help the company’s founding family heirs to strengthen their control of the tech-company.

The board of directors are said to meet on Tuesday to respond to Elliott's proposals, the report continues. Samsung has yet to comment on the information.

The company has divested non-core assets and merged two affiliates back 2015 – all in order to consolidate stakes in key affiliates in a company controlled by Jay Y. Lee (the eldest child and only son of Lee Kun-hee, Chairman of Samsung) and his two sisters, as the founding family tries to secure a stable transition of control.

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