Samsung’s founding Lee family just found themselves between a rock and a hard place.
According to the WSJ, Elliott Associates, the activist hedge fund run by Paul Elliot Singer, has recently attacked the Lee’s bid to takeover Samsung C&T through Chiel Industries, criticizing the proposal by saying that it “severely undervalues” the company.
Shares in the construction and trading corporation have risen as much 13% since then – above the price proposed by Chiel – creating a stumbling block for the Lee family who are trying to consolidate their grip on the conglomerate before an upcoming transition of power.
The family’s patriarch, the current chairman, has been incapacitated since last year, and his son’s succession to the leadership somewhat hinges on a smooth takeover of C&T, who not only owns stakes in the group’s various affiliates, but also 4.06% of the their crown jewel – Samsung Electronics.
With a two-thirds majority vote needed for the deal to push through, Elliott – who now owns over 7% of C&T compared to the Lee’s 1.4%– just might force them to up the ante on the takeover.
Photo credit: thetaxhaven via Flickr