Activist Investor Elliott Bats For Board Changes In Goodyear Tire & Rubber - Goodyear Tire & Rubber (NASDAQ:GT)

Activist investor Elliott Investment Management L.P. has written a letter to Goodyear Tire & Rubber Co GT Board of Directors highlighting steps for value creation in the company.
Elliott has an approximately 10% economic interest in the company.
Despite Goodyear's strong brand, leading market share and favorable industry tailwinds, Goodyear's stock has meaningfully and consistently underperformed, Elliott noted.
The poor stock performance is a direct result of its significant margin erosion, suboptimal go-to-market strategy, and unfocused brand strategy, said the letter.
In order to enhance the company's prospects, Elliott suggested appointing a five new independent directors to the Board to improve governance.
Also, suggestion was made to explore ways to monetize Goodyear's company-owned store network, which Elliott believes is nearly worth Goodyear's market capitalization given the multiples of auto aftermarket service businesses.
Elliott urges the company to form an operational review committee to develop an operational and margin improvement plan.
Elliott sees a $21 per share value-creation opportunity, 179% upside to current share price.
Goodyear, in its reply, said, "We are reviewing Elliott's recommendations, and we intend to meet with them to discuss their views in more detail."
"We regularly review the Company's strategic plan to ensure that Goodyear is best positioned to deliver strong, sustainable shareholder value."
Price Action: GT shares are trading lower by 0.91% at $14.10 in premarket on the last check Friday.

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