Samsung/Cheil merger goes on: Soz Elliot, not this time, says court

Court cock blocks corporate cock blocking attempt

A court in South Korea has rejected an attempt by US activist fund Elliott Associates to overturn a merger between Samsung and Cheil Industries.

In May, Sammy announced its merger with fashion, leisure and construction biz Cheil Industries, a company in which the tech giant already owns a sizable stake.

But after recently becoming Sammy's third-biggest shareholder, Elliot wasted no time throwing its weight behind a court case to stop the deal.

The fund claimed the deal was "unlawful" and not in the interests of shareholders.

The move is intended to create a combined entity with revenues of £40bn by 2020, and has been viewed as bolstering the power of the probable heir apparent Lee Jae-yon, as power passes from his ailing father.

The fund, which has a reputation for getting what it wants, said in a statement: "While we are disappointed with the court's decision, we continue to believe that the proposed merger is neither fair nor in the best interests of Samsung C&T's shareholders."

"We note that the Court has not yet decided whether the wholly inappropriate sale of treasury shares by Samsung C&T to KCC in blatant support of the Proposed Merger is, as Elliott believes, unlawful."

In its best Arnold Schwarzenegger/Series 800 Terminator voice, it warned it will be back. "We will continue to seek to prevent the proposed merger from being consummated, and we urge all Samsung C&T shareholders to do the same.” ®




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