Samsung/Cheil merger 'unfair' to shareholders
The proposed $8bn merger between Samsung C&T and holding company Cheil Industries has been criticised by outside investors who have called the transaction "unfair" to stakeholders.
An activist hedge fund in South Korea has filed a court action against the deal, which would see an all-stock takeover of Samsung by sister firm Cheil, and a shareholder advisory group has recommended that shareholders oppose it, reported Reuters.
Elliott, Samsung's third-largest shareholder with a 7.1 percent stake, launched the legal challenge and has reportedly urged other investors in the company to reject the deal. Meanwhile, the Institutional Shareholder Services (ISS) said the offer from Cheil "significantly" undervalued Samsung.
The deal will be voted on at a shareholder meeting on 17 July.