FILE PHOTO The Hyundai logo is seen outside a Hyundai car dealer in Golden, Colorado, November 3, 2014. REUTERS/Rick Wilking/File Photo
November 13, 2018
(Reuters) – U.S. hedge fund Elliott Management said on Tuesday Hyundai Motor Group was holding excess capital and that shareholder returns from the Korean automotive group were lagging industry standards.
In a letter to the directors of the group, the fund called for return of excess capital to shareholders, a review of any and all non-core assets and addition of new independent directors to its respective boards.
Elliott Management owns $1.5 billion worth of shares in three Hyundai group companies – Hyundai Motor Co <005380.KS>, Kia Motors Corp <000270.KS> and auto-parts maker Hyundai Mobis Co Ltd <012330.KS>.
The tussle between the hedge fund and the South Korean conglomerate over a potential revamp has been going on for long.
The fund had in September called for a committee to review its restructuring proposals with other investors and experts, which was rejected by the board.
Elliot said on Tuesday that non-conforming reporting of cash flows is distorting and hiding the group’s true income from operations.
(Reporting by Sanjana Shivdas and Arunima Banerjee in Bengaluru; Editing by Sai Sachin Ravikumar and Arun Koyyur)
