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What Note 7 crisis? Samsung stock hits new high
by Jethro Mullen
@CNNMoneyInvestOctober
6, 2016: 6:11 AM ET
Samsung is grappling with a huge and embarrassing recall of one of its flagship smartphones, but its stock just hit a new high. What gives?
Samsung (
SSNLF) shares trading in Seoul jumped 4.5% on Thursday after an activist hedge fund called for an overhaul of the South Korean company's complicated structure and a special $27 billion payout to shareholders.
The U.S. fund, Elliott Management, argues that Samsung's relatively cheap share price could skyrocket if the company's management is willing to make a series of key reforms.
Samsung said it will "carefully review" the proposals from the hedge fund, which is run by billionaire investor Paul Singer.
Problems with
Samsung's Galaxy Note 7 smartphone put
a big dent in the company's share price last month, wiping tens of billions of dollars off its market value. Concerns mounted after some Note 7 owners reported their phones' batteries had caught fire while charging, and aviation authorities
warned people not to use them on board planes.
But the stock has bounced back since, with some analysts saying they expect worries about the Note 7 to fade.
"Despite the recent unfortunate events associated with battery cells for the Galaxy Note 7, Samsung Electronics is well-positioned in terms of market share and profitability," Elliott Management said in an open letter to Samsung directors.
What Note 7 crisis? Samsung stock hits new high
Korea Stock Exchange
Samsung Electronics Co Ltd
KRX: 005930 - Oct 6, 3:30 PM GMT+9
1,691,000.00 KRW
72,000.00 (4.45%)
Samsung Electronics Co Ltd: KRX:005930 quotes & news - Google Finance
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