Hedge fund Elliott Associates will sell most of its shares in Samsung C&T to the company, after failing to block a takeover by Cheil Industries, which is controlled by the Samsung group’s founding Lee family,
the
Financial Times
reported.
Elliott will sell to the company the shares it held before the takeover was announced in May 26, a 4.95% stake, the article said. “The fund declined to comment on whether it had retained the shares it bought in Samsung after May 26,” the report said.
Under South Korean law, shareholders who vote against a merger have the right to sell back shares they held before the deal was announced, the article noted.
Elliott is appealing to South Korea’s supreme court for n injunction to stop the takeover. “But the share sale marks a step down in its battle against a deal seen as key to a leadership transition at Samsung,” the
FT
report said.
Lee Jae-yong, son of chairman Lee Kun-hee and Cheil’s biggest shareholder, “will now have effective control over Samsung C&T’s 4 per cent stake in flagship company Samsung Electronics — a crucial node in the group’s cross-shareholding structure,” the article said. (Source:
Financial Times
, Aug. 7, 2015.)
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