A South Korean appeals court on Thursday rejected the latest effort by US hedge fund Elliott Associates to block the $8.0 billion merger of two Samsung affiliates.
The ruling by the Seoul High Court clears any final obstacle to the convening of a shareholders’ meeting on Friday which will see a vote on the proposed takeover of construction company Samsung C&T by affiliate Cheil Industries.
Elliott Associates, which is the second largest single shareholder in C&T, opposes the takeover, saying it significantly undervalues the company’s stock.
The dispute is being seen as a landmark challenge to the often opaque and self-serving business practises of the giant, family-run conglomerates, or “chaebol,” that dominate South Korea’s economy.
Full content: The Wall Street Journal
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