SEOUL, Jun. 11 (Korea Bizwire) — Minor shareholders of Samsung C&T are siding with Elliott Associates as they agree with the hedge fund’s opposition to a merger proposal between Samsung C&T and Cheil Industries.
Over the past two days, minor shareholders have gathered individual consent to give up their voting rights to 670,000 shares so far through an internet club (http://cafe.naver.com/black26uz3).
According to the Financial Supervisory Service, Elliott Associates held 4.95 percent of the company and gained 2.17 percent more on June 3, to prepare itself as a board member of Samsung C&T.
The shares gathered by minor stakeholders are worth 50.6 billion won (US$ 45.5 million), for a 0.43 percent share of the company. Pledges range from nine shares to 35,954 shares. The number of the club’s members has increased to 1,600 from 800 on June 8.
The master of the club has written that the company needs to see “even eggs can break a rock,” and proposed to give more voting rights to the American hedge fund.
As its members are increasing in numbers, the club is currently preparing processes to transfer their voting rights. It appears that Samsung C&T minor shareholders are expecting the current conflict between the company and Elliott Associates to contribute to a rise in its stock price.
By John Choi (email@example.com)