Samsung Electronics is considering a plan to split itself into two companies, echoing the similar recent move by Hewlett-Packard.

Samsung’s split has previously been urged by US activist hedge fund Elliott Management, saying the move would boost shareholder value in the electronics division that is the crown jewel in the Samsung Group.

It wants Samsung Electronics to divide into a holding vehicle for ownership purposes and an operating company. But until now Samsung has dismissed the idea.

However observers say a split would allow the heirs of the founding Lee family to strengthen their grip on the global smartphone leader.

Under the plan, Samsung would pay a US$26 billion special dividend and agree to appoint independent directors. Neither the Lee family nor Samsung Group have so far commented on the plan.