A Testimony Opposite to Prosecution's Claim
The 23rd trial regarding Samsung Electronics vice chairman Lee Jae-yong’s involvement in the Samsung C&T-Cheil Industries merger took place at the Seoul Central District Court on Nov. 25.
There, a witness testified that Goldman Sachs proposed to provide consulting for Samsung regarding its response to Elliott Management, which was against the merger. The testimony is opposite to what the prosecution has claimed. The witness headed the investment banking arm of Goldman Sachs Seoul from 2007 to 2015.
“Elliott Management announced its stance against the merger on June 4, 2015, and then I thought Goldman Sachs should involve,” the witness said, adding, “I contacted the Future Strategy Office because I had no acquaintance at Samsung C&T, and then I contacted Samsung C&T.”
“The office and Samsung C&T had a meeting with Goldman Sachs, and then Goldman Sachs was selected as a consultant in the afternoon of June 4,” the witness went on to say, continuing, “It is not true that the office selected Goldman Sachs beforehand.”
The trial also covered former Goldman Sachs executive William Anderson, an expert in corporate control defense who joined the anti-Elliott team. “The prosecution is claiming that vice chairman Lee Jae-yong asked William Anderson to join, the witness said that is true, and this is based on the June 5 email between the witness and other employees mentioning Jay and Team,” the Samsung counsel said, adding, “However, Jay and team is a plural form and its meaning is not limited to Jay, that is, the vice chairman.”
“The witness shared an email with employees at 08:00, June 5, which mentions real-time cooperation with William Anderson, and the email mentioning Jay and Team was sent 12 hours later,” the counsel claimed, continuing, “It seems that the witness mentioned William Anderson in relation to the vice chairman after internal discussions at Goldman Sachs, the vice chairman may have said someone like him would be helpful, and it seems that William Anderson joined the team as a result.” The witness said that certain experts are usually presented by Goldman Sachs and clients cannot know about it.