Hyundai Prevails in Activist Proxy Fight

Hyundai Motor Group shareholders have rejected a proposed board overhaul and bonus dividend proposed by activist hedge fund Elliott Management Corp.

New York City-based Elliott, which is headed by activist investor Paul Singer, has been advocating reforms and greater transparency at the group’s Hyundai Motor and Hyundai Mobis units since last April.

Last year the fund successfully scuttled a planned $8.8 billion merger between Hyundai Mobis and another group company, Hyundai Glovis. Elliott argued that the deal made little strategic sense and appeared structure mainly to benefit the group’s founding Chung family.

But shareholders for the two companies rejected Elliott’s call this year for a one-time distribution of $6 billion and the addition of two board members at Hyundai Motor. Instead, stockholders backed the group’s proposal for normal dividends and the election of independent directors.