US hedge fund Elliott Management said Wednesday that Samsung Electronics Co.'s decision to consider shifting to a holding company structure and boost dividend payouts was "a constructive initial step" but hinted it wants "more meaningful changes."

Shares of Samsung climbed a day after its announcement of governance overhaul decisions, which include a review of the possibility of creating a holding company structure, a 30 percent increase in dividends and an appointment of an independent director with global business background.

Samsung has been under pressure since Elliott, which owns a 0.62 percent stake in Samsung through its two entities, made a detailed proposal in October that calls for the Korean company to improve governance structure and shareholder value.

In a statement, the two Elliott entities -- Blake Capital and Potter Capital -- said, "We view the plan outlined by Samsung to be a constructive initial step.

"We anticipate more meaningful changes following the company's corporate structure review," it said.

Elliott called for Samsung to split itself into two units -- a holding company and an operating company. Elliot then urged Samsung to list the operating company on a US exchange. Elliott also called on Samsung to pay a special dividend of 30 trillion won ($25.6 billion).

Samsung said it needs at least six months to complete the review of a holding company structure.

The Tuesday announcement by Samsung appeared to fall short of Elliott's proposals, but it is likely to appease investors, analysts said.

Shares of Samsung Electronics rose to a record high of 1,739,000 won in early afternoon trading Wednesday. (Yonhap)