Activist Elliott Management is calling for a shakeup at Goodyear Tire Rubber (NASDAQ: GT), including recommending five candidates for the company's board. Investors are excited about the potential or change, sending shares up as much as 29% on Thursday morning.

Elliott Management, the hedge fund run by billionaire Paul Singer, has a long track record of successfully pushing for change inside companies. In a letter to Goodyear's board released Thursday, the fund spotlighted a low operating margin, an underutilized retail platform, and a loss of investor confidence as reason change is needed.

Elliott, which owns about 10% of Goodyear shares, notes that Goodyear has underperformed the S 400 mid-cap stock index by 90% over the past five years and by 143% over the past 10 years. It has also underperformed other auto parts stocks.

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Source Fool.com