U.S. activist hedge fund Elliott Management made fresh proposals to restructure Hyundai Motor on Friday, renewing pressure on the South Korean conglomerate months after forcing it to abandon its own plan.
Elliott, which owns $1.5 billion worth of shares in three Hyundai group companies, called for a committee to review its proposals with other investors and experts, and said its attempts to discuss a new plan had been met with silence.
Hyundai rejected the committee idea and added that it hoped "to share our thoughts on how to improve shareholder value with all of our shareholders in due course."
In a rare victory for an activist shareholder in South Korea, Elliott and other shareholders in May forced Hyundai to scrap its own restructuring plan which would have prepared the group for a switch of management from father to son.
The setback for Hyundai, the country's second-largest business group, came amid growing public scrutiny of families controlling large conglomerates in South Korea after a corruption scandal involving the Samsung last year.
Hyundai said in May that it would "supplement and improve" the plan, which it said aimed to address a government call for the company to streamline its ownership structure.
Hyundai has yet to make its revised plan public.
"We express our frustration as to HMC board's silence towards our consistent attempts... to communicate and advance the restructuring and other projects," Elliott said in a letter sent to Hyundai on August 14.
The letter, made public on Friday, proposed a committee to discuss restructuring, shareholder returns and a board makeup.
Hyundai rejected the proposal for the committee, saying it could violate "fair disclosure rules, which prevent us from sharing material confidential information about the company and its businesses to only a subset of our shareholders."
The renewed pressure comes as Hyundai seeks to focus on operational issues after its quarterly profit halved to an almost six-year low, and South Korea's trade tensions with the United States threaten to disrupt the firm's production plans.