Profile Advisors is handling Whitebox Advisors’ effort to block LG Corp.'s plan to spin off some businesses into a new holding company.
The New York hedge fund claims the scheme fails to address LG’s “most pressing issue, which is the unprecedented discount at which the company trades relative to its assets, and accordingly, inferior return to shareholders.”
Whitebox in its Dec. 14 letter to LG’s board, said the decision to proceed with the spin-off reflects poorly on LG’s corporate governance. “Despite clearly favorable alternatives, the board has unanimously approved a plan that, in our view, sacrifices minority shareholder return in order to resolve a family succession issue.”
Whitebox, which has $5.5B in assets under management, is a long-term shareholder of Korea-based LG.
The hedge fund said it has repeatedly sought to engage LG’s board and management team “in a constructive, private manner over the past two years” and is extremely disappointed that its feedback and viewpoints have been dismissed or ignored.
Profile Advisors’ Greg Marose, Bela Kirpalani and Charlotte Kiaie represent Whitebox.