A piece of bad news for New York hedge fund activist Elliott Associates and other smaller shareholders of Samsung C&T who are against its merger with another Samsung Group firm, Cheil Industries.
According to Bloomberg, Samsung C&T’s biggest shareholder, National Pension Services, will probably vote for the proposed takeover of Samsung C&T by Cheil.
It’s not purely for nationalism. NPS, Korea’s state-run pension fund, has to protect its interests in other companies owned by Samsung Group, the report said.
Bloomberg wrote:
“Its (NPS) stakes in at least 12 listed Samsung affiliates, worth $17.8 billion, may force its hand on C&T because with the takeover so integral to Samsung’s once-in-a-generation leadership transition, the fund can’t evaluate the deal in isolation.”
NPS owns a 10.15% stake in Samsung C&T, Bloomberg said, and its vote on July 17 will have a big impact on the proposed takeover and eventual merger between the two Samsung affiliates.
Elliott, which has opposed the takeover bid since it would be unfair to Samsung C&T shareholders, has filed a court injunction to stop Cheil from taking over Samsung C&T.
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