Samsung has won the merger war:
. . . C&T shareholders approved the contested merger, with almost 70% voting in favour. (Earlier in the day Cheil’s shareholders had voted unanimously to pass the bid.) (cite)
Samsung did everything it could do to win:
Watermelons and walnut cakes were hand-delivered to shareholders’ homes; text messages implored them to toe the line. Solemn front-page advertisements, which ran in almost every local newspaper this week, put forward an “earnest plea to shareholders.
however, nothing stays the same:
Whatever the legal outcome, Elliott’s continuing defiance will be an irritant to Samsung and the Lee family. Its protest—a rare challenge by a foreign activist fund to South Korea’s biggest business group—has stirred public debate in the country about its corporate-governance standards, at a time when disenchantment with the families that own its large corporations, or chaebol, is growing. Local minority shareholders have rallied in online communities over the past six weeks. Many hoped C&T’s biggest single investor, South Korea’s National Pension Service (NPS), would oppose the bid—just as it did recently with a similar in-house merger at another chaebol, SK Telecom. However, the NPS appears to have cast its vote in favour this time.
Other “ants” or smaller shareholders, such as Grace Jeon had plenty to say about the merger:
Grace Jeon, a 53-year-old freelancer from the city of Ilsan, is one of those shareholders (ants). . . Ms. Jeon said in an interview ahead of the vote that she planned to oppose the merger, which she called an attempt to push through family succession over the best interests of small shareholders.
“This merger is for Lee Jae-yong, by Lee Jae-yong and of Lee Jae-yong,” she said in an interview, referring to the 47 year-old son of Samsung chairman Lee Kun-hee. She added that foreign shareholders deserve the same rights. (cite)
One commenter in the Economist article raised issues with how Samsung had conducted its campaign, based on what amounts to Samsung’s sponsored libel against Elliot Partners and Jews, in general:
The ugliness is, in part, that Samsung resorted to blunt hateful Jew-hating cartoons posted on C&T’s own website depicting Elliott’s Jewish CEO as a vulture. And Samsung refused to acknowledge, let alone stop this until a NY Observer story was picked up by the AP and spread around the world. Only then did the company issue a standard retraction. Samsung also appears to be behind a campaign pushed by a company called Mediapen whose former head and large shareholder is a deputy minister in the South Korean government, which included their own materials and enlisted columnists and TV to write about “ruthless” Jewish money. This campaign includes saying that Jewish “money” controls Institutional Shareholder Services Inc., a US shareholder advisory service – which conveniently of course ignores the fact that the Korea Corporate Governance Service advised against the deal.
So the lesson for me, other than not buying Samsung products, is that the Lee family is ruthless though they are not Jewish.
Of course I really hope the commenter is not living in Korea since he might have a problem with such a litigious and ruthless-non-Jewish company as Samsung.
The advisory committee on Friday requested that the fund
revise its internal rules and regulations to minimise potential
controversy on future decisions, without elaborating further.
Would they have recommended against this merger since the board had already made up their minds before the vote?