A U.S. hedge fund dropped a suit filed against Samsung C&T to end their months-long dispute over the merger between two Samsung units.
Elliott Associates dropped the case on Wednesday after reaching an agreement with Samsung C&T, according to a news report.
A recent probe into Elliott on suspicions of a breach of local disclosure rules regarding its previous acquisition of Samsung C&T shares seems to have pushed the hedge fund into making the latest decision, industry sources said.
As a stakeholder in Samsung C&T, Elliott had issued lawsuits to block the merger between the trading company and another Samsung affiliate -- Cheil Industries. The latter is Samsung Group’s de facto holding firm. Elliott argued that the merger undermines the interests of minority shareholders.
In September 2015, Samsung C&T was reborn as a new entity, despite the objection from Elliott. The merger was a part of the group’s efforts to streamline its business.
(khnews@heraldcorp.com)