Disir
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- Sep 30, 2011
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Samsung has escalated its fight with Elliott Associates by raising doubts about the evidence the U.S. hedge fund submitted during a court hearing.
The hearing was held June 19 after Elliott, a major shareholder of Samsung C&T, sought injunctions to block the sale of Samsung C&T to Cheil Industries, the de facto holding company of Samsung Group.
Nexus, a legal representative of Elliott, presented a corporate evaluation report to reinforce the claim that the proposed merger ratio damages the interests of Samsung C&T shareholders, including Elliott.
The law firm quoted the report by EY Han Young that says the net asset value of Samsung C&T is more than twice that of Cheil.
EY Han Young is a local member firm of global audit company Earnest and Young.
Based on the paper, Nexus claimed that each Samsung C&T share should be exchanged for at least 1.16 shares in Cheil, instead of the proposed ratio. The merger announcement said that every Samsung C&T share will be exchanged for 0.35 share of Cheil.
The proposed ratio will incur damages worth 7.8 trillion won ($7.06 billion) to Samsung C&T shareholders, according to Elliott.
Samsung C&T asked for the original draft of the report on Monday, saying that the assessment uses disparate accounting standards towards Samsung C&T and Cheil.
“We believe that Elliott tampered with the report in a way that inflates the value of Samsung C&T and devaluates Cheil,” said a representative of Samsung C&T.
Then EY Han Young weighed in, accusing Elliott of violating a contract.
The audit firm said that the report is not meant to be used in court.
“Elliott deleted a part of the draft and submitted it to the court at discretion without any consultation [with EY Han Young],” the audit firm said in a statement.
“The report is banned from being released to the third party and should be used as a reference internally,” the firm said, “And the report is not an appropriate source to determine merger and acquisitions because it is designed to help internal decision-making based on limited information revealed on regulatory filings.”
http://koreajoongangdaily.joins.com...aid=3005781&cloc=joongangdaily|home|newslist1
Looks hostile to me.
The hearing was held June 19 after Elliott, a major shareholder of Samsung C&T, sought injunctions to block the sale of Samsung C&T to Cheil Industries, the de facto holding company of Samsung Group.
Nexus, a legal representative of Elliott, presented a corporate evaluation report to reinforce the claim that the proposed merger ratio damages the interests of Samsung C&T shareholders, including Elliott.
The law firm quoted the report by EY Han Young that says the net asset value of Samsung C&T is more than twice that of Cheil.
EY Han Young is a local member firm of global audit company Earnest and Young.
Based on the paper, Nexus claimed that each Samsung C&T share should be exchanged for at least 1.16 shares in Cheil, instead of the proposed ratio. The merger announcement said that every Samsung C&T share will be exchanged for 0.35 share of Cheil.
The proposed ratio will incur damages worth 7.8 trillion won ($7.06 billion) to Samsung C&T shareholders, according to Elliott.
Samsung C&T asked for the original draft of the report on Monday, saying that the assessment uses disparate accounting standards towards Samsung C&T and Cheil.
“We believe that Elliott tampered with the report in a way that inflates the value of Samsung C&T and devaluates Cheil,” said a representative of Samsung C&T.
Then EY Han Young weighed in, accusing Elliott of violating a contract.
The audit firm said that the report is not meant to be used in court.
“Elliott deleted a part of the draft and submitted it to the court at discretion without any consultation [with EY Han Young],” the audit firm said in a statement.
“The report is banned from being released to the third party and should be used as a reference internally,” the firm said, “And the report is not an appropriate source to determine merger and acquisitions because it is designed to help internal decision-making based on limited information revealed on regulatory filings.”
http://koreajoongangdaily.joins.com...aid=3005781&cloc=joongangdaily|home|newslist1
Looks hostile to me.
