Goodyear Tire & Rubber Co. said it will appoint new board members and launch a review of its business as part of a settlement with activist Elliott Investment Management.
(Bloomberg) — Goodyear Tire & Rubber Co. said it will appoint new board members and launch a review of its business as part of a settlement with activist Elliott Investment Management.
The Akron, Ohio-based company is setting up a board committee to oversee a review of strategic and operational alternatives to maximize shareholder value, it said in a statement Tuesday. Evercore Inc., Lazard Ltd. and Goldman Sachs Group Inc. are serving as financial advisers to Goodyear.
Goodyear shares jumped as much as 3.5% in pre-market US trading Tuesday.
“We have been encouraged by Goodyear’s openness to taking actions necessary to realize its full potential,” Elliott Senior Portfolio Manager Marc Steinberg and Portfolio Manager Austin Camporin said in the statement. “We are confident that our agreement enhances governance at Goodyear and ensures that the company will remain focused on long-term shareholder-value creation.”
Goodyear is naming three new independent directors supported by Elliott including Joseph Hinrichs, an automotive industry veteran who now serves as chief executive officer of railroad giant CSX Corp. The other appointees are Max Mitchell, CEO of aerospace and defense supplier Crane Co., as well as Tenneco Inc.’s former co-CEO, Roger Wood.
Elliott, backed by billionaire Paul Singer, has agreed to customary standstill and voting agreements as part of the settlement, according to Tuesday’s statement.
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