Greece is not the only suspenseful yes-or-no vote that has been on everyone’s minds as of late.
Samsung is having one heck of a knock-down shareholders fight. This Friday will be the day that Samsung C&T shareholders will vote on its future and “essentially the fate of the whole conglomerate and determine whether they approve its merger with Cheil Industries, the de facto holding company of Samsung Group.” (cite)
To summarize the situation:
Samsung Group, South Korea’s largest conglomerate made up of 67 companies, is controlled by the powerful Lee family via a complex web of cross-shareholding. Samsung C&T owns 4.06 percent of the group’s crown jewel, Samsung Electronics, with the value of its stake in the electronics giant standing at more than 7.6 trillion won ($6.7 billion) alone. Samsung Life Insurance controls 7.2 percent, while Cheil controls 19.3 percent of Samsung Life Insurance.
Last but not least, Jay Y. Lee owns 23 percent of Cheil, with his sisters Lee Boo-jin and Lee Seo-hyun controlling 7.7 percent each. Lee Kun-hee, the Samsung Group chairman, owns 3.4 percent.
Although Cheil has nothing to do with financial businesses on paper, it acts essentially like a financial holding company, controlling a significant stake in Samsung Life Insurance.
The merger between Samsung C&T and Cheil is certain to help the Lee family exert more influence over Samsung Electronics and is seen as a necessary step as the conglomerate prepares to make a generational change from the now-hospitalized Lee Kun-hee to his 47-year old son.
This is a very big deal, for example:
South Korea’s $422bn National Pension Service is poised to make one of the most high-pressure interventions in its 28-year history, with a vote that could swing the fate of a key merger in the Samsung group. . . The NPS holds big stakes in both companies — a situation that has highlighted the huge domestic clout of the world’s fifth-biggest pension fund, while heightening calls from activists for it to take a lead in defending South Korean corporate governance standards. . . The NPS is at the centre of the whole controversy — it’s created an awkward situation for them,” says Park Yoo-kyung, an investment adviser at the Dutch fund APG Asset Management, which holds a stake in Samsung C&T. . . Analysts say that this week’s vote is likely to be close and that the NPS — Samsung C&T’s biggest shareholder with 11.9 per cent — could decide the outcome. . . the NPS has courted controversy by making its decision in-house without turning to an advisory committee set up to assist with difficult voting decisions. That committee has shown willingness to oppose controversial management decisions, last month opposing a merger of two SK group companies citing similar objections to those made by Elliott in the Samsung case.
One shareholder, Elliott Associates LP (hedge fund), intensified its opposition to Samsung Group’s proposed merger of two units, a day before the U.S. hedge fund’s dispute with South Korea’s largest conglomerate went to court in Seoul. (cite) Elliot has also attracted the many small investors, referred to in South Korea as being “ants”, and have joined forces with Elliott.
According to Elliot, Cheil Industries Inc.’s offer to buy Samsung C&T Corp. is “unlawful” and creates “open-ended regulatory risks,” the fund headed by billionaire activist Paul Elliott Singer said in an online presentation on Thursday that laid out its case against the deal.
According to some analysts, this “showdown” between Samsung and Elliot Associates will shake up South Korea.
“Lawyers say the controversy will also prompt a rethink of the rules governing mergers between sister companies, which allowed the lowball offer in the first place. In any case, the backlash should make the chaebols less dismissive of outside shareholders.”
Meanwhile, South Korean media, in a typical demonstration of some of its totally irrational bias has managed to infuriate Jews:
Jewish organizations over the weekend denounced what they say are anti-Semitic statements in the South Korean media blaming Jews for attempts to block a corporate merger between two subsidiaries of the Samsung conglomerate. The Anti-Defamation League and the Simon Wiesenthal Center have called upon the Asian country’s government and on Samsung to repudiate the claims, which have appeared in a number of business publications supportive of the deal.
The target of the opprobrium is Paul Singer, the Jewish head of the Elliot Associates hedge fund, which owns a seven percent stake in Samsung C&T, which seeks to merge with Chiel Industries.
According to South Korean financial publication MoneyToday, “Elliott is led by a Jew, Paul E. Singer, and ISS [an advisory firm that analyzed the merger] is an affiliate of Morgan Stanley Capital International (MSCI), whose key shareholders are Jewish. According to a source in the finance industry, Jews have a robust network demonstrating influence in a number of domains.”
Meanwhile, Mediapen, another local publication, asserted that Jews are known to wield enormous power on Wall Street and in global financial circles” and that it is a “well-known fact that the US government is swayed by Jewish capital.” (cite)
Per Mediapen: “Jewish money, it reported, “has long been known to be ruthless and merciless.”
Mind you, it would be irresponsible to note that South Korean media also has long been known to be unprofessional and racist, especially considering their important role in revealing the hordes of HIV/AIDS infested, foreigners and the ongoing foreigner-driven crime-wave. The JDL and others have to realize that Koreans actually admire Jewish thought since the Talmud has been transmogrified into Korean.