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The hedge fund is said to have a ~10% stake in Goodyear and is one of the largest investors.
“[Elliott] has strong conviction in the significant value-creation opportunity achievable at the Company,” it is said in the letter.
Goodyear shares gained nearly 17% on the letter.
Elliott advises the management to take several steps to “create value at Goodyear and realize its full potential,” including:
More precisely, Elliott sees a $21 per share value-creation opportunity in Goodyear, which marks an increase of 179% to its current share price.
“Goodyear’s stock has meaningfully and consistently underperformed,” the latter also said.
As such, Elliott says that “it is rare to find a company with as much potential to increase shareholder value.”
Goodyear shares are up 15.5% through Wednesday’s close.
