The National Pension Service did not discuss its position on whether or not it would support the proposed Samsung C&T-Cheil Industries merger when it held a decision-making committee meeting Tuesday, officials said.

The NPS committee meeting was held amid reports that its fund management office’s investment panel internally decided last Friday to support the controversial merger proposal.

Holding an 11.21 percent voting stake in Samsung C&T, the NPS’ decision regarding the merger is seen as critical in either pushing the move through or stopping Samsung Group’s plans in its tracks.

Samsung is setting a final showdown with opponent U.S. hedge fund Elliott Associates to woo shareholders.

NPS officials said the issue of the Samsung C&T-Cheil Industries merger was not included in the agenda for Tuesday’s meeting, as no such request was made.

However, the NPS said that the committee discussed “in depth” why the request was not made and that its conclusion on the issue would be announced after the July 17 Samsung C&T shareholders meeting.

The move by Samsung Group, which would see the two companies merge at a ratio of 1 to 0.35 in favor of Cheil Industries, has been strongly opposed by Elliott from the outset.

The U.S. hedge fund claims the merger is unlawful and detrimental to Samsung C&T stakeholders.

Samsung, for its part, has been hitting back, questioning the credibility of Elliott, and appealing to the patriotism of Korean institutional and private stakeholders.

By Suk Gee-hyun (monicasuk@heraldcorp.com)