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Elliott Management built more than 300 million pounds in the London -listed Smith Group prior to the announcement of last week’s Konglomarit.
According to those who are familiar with this issue, hedge fund has accumulated almost 5 % of Smith for the past year. Elliott supports the company’s plan to sell or demarize two of the four core units and return many of the profits to investors.
Smith, which has reduced companies over the aerospace, communication, energy, and security, said that last week, the end of the last large -scale industrial Conglomarit described in London will rationalize the business.
People, based in the United States, said that they had been in contact with company management in recent weeks. Engine capital, an American activist investor, has a status in Smith and called last month to explore the dissolution.
“We welcome measures to improve the value announced last week, including simplification of portfolios and new stock buying programs,” said Elliott. “I am looking forward to the continuous and constructive dialogue with the company in anticipation of the complete presentation of the strategy updated on March 25.”
Smith rejected the comment.
Elliott, who has a $ 70 billion assets under control, believes that Smith has been underestimated even after the stocks have been gained 11 % behind last week’s announcement. Investors are also familiar with the problem, as the company is looking at the scope of promoting the return beyond the 500 million pounds already announced.
Smith said he was aiming to sell this year’s electric connector business and aims to sell or sell a Smith detection group known as baggage sellers at the airport.
The company is currently planning to focus on industrial technology through John Crane Division, which produces stickers and components that control liquid and gas flow.
JPMORGAN CHASE analysts say that if Smith’s shares were completely deleted last week, the company’s so -called conglomarit discounts were completely deleted, and it could be almost 50 % from the place where the division was traded prior to the announcement of division. I mentioned.
Smith announced only a few weeks after the engine capital, with about 2 % of the company, seeking dissolution to strengthen its evaluation.
Loland Carter, the highest executive officer of Smith, who took over Paul Keel last year, said that strategic overhaul was progressing before the fund’s public intervention.
