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S. Korea faces second legal battle from US fund over Samsung merger

Tuesday 03 July 2018 12:33 PM

Samsung Electronics
Samsung Electronics

The Korea Herald:
Korea's government is facing another investor-state dispute lawsuit from a US fund over a controversial merger of two Samsung Group companies in 2015.
The Ministry of Justice said in a release on Tuesday that it has received a notice of intent from Mason Capital Management, seeking $175 million in compensation for losses incurred from its investment in Samsung C&T Corp., after it merged with Cheil Industries Inc.
It is the second proposal of arbitration offered to the government by a US investor. US activist fund Elliott Associates offered a similar deal regarding the Samsung merger for at least a $670 million payout.
Korea has 90 days to decide whether to accept the settlement before it goes to the international tribunal for ISD.
Elliott, with a 7 percent stake in Samsung C&T, led a proxy fight against the merger in 2015, citing unfair terms that it said greatly undervalued the company and investors' interest. Mason held about 2.2 percent in the Korean company and voted against the merger.
The controversial merger went ahead, backed by the state-run National Pension Service's swing vote in Samsung' favor.