US/South Korea: Proxy advisor Glass Lewis urges vote against Hyundai merger


US proxy advisor Glass Lewis on Monday, May 14, recommended shareholders reject Hyundai Mobis proposed spin-off merger plan, citing “questionable business logic” and “inadequate valuation,” reported Bloomberg.

The criticisms are a setback for the group’s heir apparent, Vice Chairman Euisun Chung, as he prepares for Korea’s biggest proxy fight since Samsung Group narrowly defeated billionaire Paul Singer’s Elliott by muscling through a controversial merger of two units nearly three years ago.

Should the Hyundai deal, which requires a two-thirds majority to pass in a vote scheduled on May 29, be blocked, it would mark a landmark victory for foreign activist investors in a country where all such campaigns have failed.

Full Content: Bloomberg

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