The first injunction brought on by NY-based hedge fund Elliott Management against the proposed merger between Samsung C&T and its sister company, Cheil industries, is set to be heard in a district court in Seoul today, Korea’s Arirang (video) reports.
Here’s what Arirang had to say regarding one of Elliott’s claims:
“Elliott also takes issue with the recent sale of Samsung C&T’s treasury shares to the merger-friendly local manufacturer KCC… …an attempt by Samsung C&T to sway the merger vote their way at a shareholders’ meeting set to take place in mid-July… …given the circumstances, those in legal circles believe Samsung has a stronger case, at least in the first hearing.”
Arirang added that while local courts have historically sided with Korean companies in cases such as this, should Elliott push for a retrial or turn this into an “investor-state dispute”, the tables could easily turn against Samsung C&T’s board of directors as it would appear that they are putting the interests of Samsung’s founding family ahead of their own shareholders.
Given the stakes – and the cast of characters – involved, this trial could surely turn into an intense legal drama. Stay tuned.
Photo credit: Jamie McCall via Flickr