South Korean Court Ends Elliott’s Effort To Stop Samsung Merger

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South Korean Court Ends Elliott’s Effort To Stop Samsung Merger

A court in South Korea ruled against an effort by American activist investor Paul Singer’s Elliott Associates to block an upcoming shareholders’ vote on a proposed merger between two Samsung subsidiaries.

According to analysts, the merger is a key piece in the succession plan of the family that controls Samsung. The electronics and manufacturing giant is South Korea’s leading family-controlled conglomerate, and is controlled via a complicated web of shareholdings among the firm’s subsidiaries. The merger of these two main subsidiaries will create a holding company more in line with global standards and will make it easier for the family to maintain control.

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More on planned Samsung merger

Singer and Elliott Associates were trying to stop the transfer of power move at Samsung by filing a request for an injunction with a Seoul District Court. Elliott was asking the court to stop the construction and engineering-focused Samsung C&T Corporation from holding a shareholders’ meeting on July 17th to vote on an $8 billion takeover bid from Samsung subsidiary Cheil Industries.

Elliott currently holds a 7.12% stake in Samsung C&T, is claiming the all-stock merger offer from Cheil “grossly undervalues” Samsung C&T. The legal filing from Elliott argued the merger would serve the family that controls the Samsung conglomerate, but was not in the best interests of all of the shareholders.

The distric