Billionaire investor Paul Singer is at war with the Samsung dynasty, and on Thursday he released a slide deck laying out his grievances with the Lee family’s attempt to merge Samsung C&T into their larger holding company, Cheil Industries.
“Elliott continues to view the terms of the proposed takeover as unfair, unlawful, and significantly damaging to the interests of Samsung C&T shareholders,” Paul Singer’s hedge fund, Elliott Management, said in a statement.
Elliott, which has a 7% stake in Samsung C&T, recognised that the Lees are attempting the merger in order to ensure a smooth succession between generations in its released. Still, it thinks the $US9 billion sale price the Lees have floated seriously undervalues the Samsung C&T and overvalues its parent company, Cheil.
Elliott also argues that there are regulatory issues with the merger including a violation of the Fair Trade Act, and that Cheil is actually just an unregulated financial holding company.