The move has spread negative sentiments among the investors
South Korean tech giant, Samsung, again came under the line of heavy fire as it was recently reported by the Seoul Economic Daily that the company might spilt its business into two. The move emerges as the smartphone maker is facing increasing amount of pressure from the US activist hedge fund Elliot Management
Subsequently, it is worth noting that the board of directors of the tech mammoth plans to meet tomorrow in order to announce the decision. In addition, the news has spread negative sentiments in the forex market as the spin off could negatively impact the company’s shares.
Moreover, the Korea Exchange separately approached the tech mammoth to comment on whether it has plans for the spinoff or not. However, the company result to make any immediate comment on the reports that are swirling in the tech space.
Moreover, the tech behemoths has been facing increasing backlash from its customers because of the Note7 fiasco. Adding to that, it is pretty clear that the company is also facing significant amount of pressure from its main rival, Apple. In addition, it was also recently reported that the company lose its spot as a market leader in the smartphone industry.
It is worth noting that neither Samsung Group nor Lee family commented on the report published by Seoul Economic Daily. However, the conglomerate’s reorganization efforts have been increased significantly ever since Mr. Lee took over his father’s position.