Samsung considers splitting in two after pressure from activist investor

Samsung will also boost shareholder returns for the year, increasing dividends for 2016 by 30% to 4 trillion won ($3.4 billion), that should boost dividends per share by 28,500 won ($24).

But it's also struggling with the issue of family succession in a very traditional family-run South Korean company. The call was made for splitting the company and transforming into a holding company, for the sake of ownership and for boosting the returns for shareholders.

An anonymous source quoted by Seoul Economic Daily had previously been cited by Reuters saying that Samsung is considering the split as proposed by the company's shareholders.

Samsung Electronics could be about to split its company in half, just as the US hedge fund management firm Elliott Management -which owns 0.6 percent of it- proposed it to the South Korean giant last month. Elliott owns a 0.6 percent stake in Samsung.

A split in two has always been a subject of market speculation with analysts noting that such a move could help the Samsung Group founding family heirs to boost their control of the world's top maker of smartphones, memory chips and televisions.

To date, Samsung has said it is considering Elliott's proposal, the report noted.

Meanwhile, Samsung discontinued its Galaxy Note 7 smartphone for overheating batteries that could cause the device to catch fire or explode.

Samsung also said work was underway with outside advisers to review optimal corporate structure.

The possible shake-up of Samsung's structure comes as the company aims to recover from the disastrous Galaxy Note7 saga, and as Jay Y. Lee, son of Samsung Chairman Kun-hee Lee, takes on additional responsibility over the company.

All this has led investors to grow a little concerned about how Samsung is managed.

So far, Bloomberg reported the scheme has garnered public support from other investors including Artisan Partners, which holds more than 1 million Samsung Electronics shares, and long-time Samsung investor Aberdeen Asset Management Asia.

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