South Korean tech giant Samsung Electronics will discuss plans to boost shareholder value on Tuesday, following increased pressure by a U.S.-based hedge fund and a new report alleging the company may consider dividing itself in two.
Market analysts have long speculated that a split would help Samsung family heirs increase their control of the company. On Monday, the Seoul Economic Daily reported that the South Korean conglomerate will discuss its plans -- including the one about splitting -- on a conference call on Tuesday morning.
Activist fund Elliott Management floated the idea of fracturing the company in October, and also called on the firm to pay out $26 billion to shareholders in a special dividend. Elliott owns a 0.6 percent stake in Samsung.
Samsung’s call to investors comes during a tumultuous time for the company, which is still reeling from the recall and eventual scrapping of its new Galaxy Note 7 smartphone. The withdrawal, due to the gadget’s tendency to overheat or catch fire, will cost the company $5.2 billion over three quarters. The company also ordered a recall 2.8 million washing machines in November.
Samsung has not confirmed whether it is considering the split.