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You can find the current article at its original source at https://www.theguardian.com/technology/2016/nov/29/samsung-electronics-may-split-amid-pressure-over-governance-and-dividends
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| Samsung Electronics may split amid pressure over governance and dividends | |
| (35 minutes later) | |
| Samsung Electronics has said it is considering splitting in two, to allow heir-apparent Lee Jae-yong to take over the firm from his father, Lee Kun-hee, and address governance concerns. | Samsung Electronics has said it is considering splitting in two, to allow heir-apparent Lee Jae-yong to take over the firm from his father, Lee Kun-hee, and address governance concerns. |
| Samsung has also come under pressure from foreign investors, including the US hedge fund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders. | Samsung has also come under pressure from foreign investors, including the US hedge fund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders. |
| The move comes as it struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries. | The move comes as it struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries. |
| Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit. It would take at least six months to study the option. | Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit. It would take at least six months to study the option. |
| Analysts said a split would give Samsung Electronics’ vice-chairman, Lee Jae-yong, a tighter grip on the company through a holding firm. | Analysts said a split would give Samsung Electronics’ vice-chairman, Lee Jae-yong, a tighter grip on the company through a holding firm. |
| Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross-shareholdings with sister companies. | Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross-shareholdings with sister companies. |
| They also said the company should increase dividends for shareholders. | They also said the company should increase dividends for shareholders. |
| Samsung said it would increase per-share dividends by 36% this year to 28,500 won (US$24.38). | Samsung said it would increase per-share dividends by 36% this year to 28,500 won (US$24.38). |