Samsung dynasty thwarts House of Elliott

cast-of-dynasty-5It has been labelled one of South Korea’s most controversial mergers, but it has been given approval by shareholders of the construction company Samsung C&T.

Samsung C&T wants to be taken over by holding company Cheil Industries which is another part of the Samsung group. The move is strongly opposed by some of Samsung C&T’s shareholders, led by US hedge fund Elliott Associates.

Elliott Associates, which is the second largest single shareholder in C&T, says the takeover significantly undervalues the company’s stock. The hedge fund had filed several unsuccessful law suits to stop the vote from going ahead.

It is all part of a delicate ballet for Samsung’s founding family to consolidate control of the conglomerate. The business empire’s patriarch Lee Kun-hee has been in hospital since May 2014 and his son Lee Jae-yong is to take a bigger leadership role.

Shareholders in Cheil Industries approved the merger earlier on Friday and now with Samsung C&T approving the move there is nothing to stop the Samsung dynasty continuing on for a few more seasons.