2023-05-11 09:20:29 ET
Goodyear Tire ( NASDAQ: GT ) soared 20% in premarket trading after activist investor Elliott Investment Management reported a stake and plans to seek five board seats, as well as sale of its store network.
Elliott said it has an economic interest of 10% in Goodyear and wants the company to explore ways to monetize its Goodyear company-owned story network, according to a statement on Thursday. The famed activist hedge fund also wants the company to start an operational review and look to improve its margin.
Elliott, run by Paul Singer, believes, that the Goodyear ( GT ) could unlock more than $21 a share in value, or a 179% increase its share price, if it goes forward with the investor's suggestions.
"It is an unfortunate fact for Goodyear and its investors that over the past decade, owning Goodyear stock has been a disappointment," Elliot portfolio managers Marc Steinberg and Austin Camporin wrote in a letter to Goodyear's ( GT ) board. "We believe the Company's poor stock performance is a direct result of its significant margin erosion, suboptimal go-to-market strategy and unfocused brand strategy, which have collectively led to a loss of investor confidence."
Developing story ...
For further details see:
Goodyear Tire stock jumps 20% as Elliot takes stake, pushes for board seats