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Is Elliott Retreating from the Fight?
Rethinking
Is Elliott Retreating from the Fight?
  • By matthew
  • July 28, 2015, 06:30
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Elliott Management, which had sought a legal fight against the merger of Samsung C&T by Cheil Industries, is said to have returned real stockholder certificates for Samsung Fire & Marine Co., Samsung SDI, and Samsung C&T to the Korea Securities Depository.

There is speculation that the approval of the merger at the shareholders’ meeting exerted pressure on Elliott to dispose of its shares in Samsung affiliates and withdraw from the unpleasant situation. But Elliot remains silent on the matter.

According to an interview with an insider on July 27, Elliot returned real shareholder certificates for shares in Samsung C&T (7.12 percent), Samsung SDI (1 percent), and Samsung Fire & Marine Insurance (1 percent) to the Korea Securities Depository on July 24.

According to capital market law enforcement regulations, during the period when a shareholder exercises shareholder rights, the disposal of shares is restricted. However, if a shareholder disposes of the certificate before the exercising period expires, the restriction is relaxed.

An industry watcher said, “It is possible that Elliott decided to sell off its shares in Samsung C&T.” Elliot holds 11.12 million shares with the average prices per share worth about 63,000 won (US$54.08).

On June 4, Elliot declared that it acquired a 7.12 percent stake in Samsung C&T, and announced its objection against the merger of Samsung C&T and Cheil Industries. Moreover, Elliott suggested a request of in-kind dividends and interim dividends. Elliott also filed an injunction against holding a shareholders’ meeting for the resolution. It also filed a lawsuit prohibiting the disposal of shares in Samsung affiliates.