Elliott Associates LP which announced on June 4 that it had acquired am 7.1% stake in Samsung C&T Corp., has written to other investors recommending that they reject a takeover bid from the Lee family's Cheil Industries Inc.,
Bloomberg reported.
Cheil is offering 0.35 share for each share of Samsung C&T, the report noted.
Elliott also wrote to Samsung C&T requesting that it use assets to help pay dividends, the Bloomberg article said.
These moves by Elliott, the hedge fund owned by Paul Elliott Singer, “may make it harder for the Lees to reshape the Samsung Group conglomerate as they prepare for leadership transition to a new generation,” the Bloomberg article said. “Gaining control of Samsung C&T, which holds about $12 billion of shares in other listed chaebol members, would help the family tighten their grip and boost ownership of crown jewel Samsung Electronic Co.”
Analyst Chae Yi Bai of the Center for Good Corporate Governance in Seoul told Bloomberg, “There is a possibility that the deal may fall apart if Elliott is able to get enough investors to side with it.” (Source: Bloomberg, June 8, 2015.)
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