Samsung’s stock has been trading at record highs this year but in the days after the recall the company’s stock has been down by more than 10 percent. Investors are concerned about the financial impact of the Galaxy Note 7 recall and any long term damage that has been caused to the Samsung brand as a result of this.
Elliott isn’t panicking like other investors. The hedge fund’s affiliate companies – Blake Capital and Potter Capital – actually own the stake in Samsung Electronics. They have released the following statement today: “The recent issues surrounding the Galaxy Note 7, while unfortunate, do not diminish our view that Samsung Electronics is a leading global technology company with a world-class brand.”
They are sticking to their proposal that Samsung Electronics should be split up into two. I’ve already explained in quite a bit of detail why Samsung is likely to work with the hedge fund than against it this time around.