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US hedge fund demands $770 million from South Korea over Samsung merger

The transaction -- which activist fund Elliott Associates and other shareholders said wilfully undervalued C&T -- was seen as a key step to ensuring the succession of Samsung heir Lee Jae-yong.

July 13, 2018 / 17:31 IST
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A US hedge fund is demanding almost $800 million from South Korea at an international tribunal over the controversial merger of two units of the giant Samsung conglomerate, officials said today. The 2015 deal, in which fashion, food and leisure operator Cheil Industries took over construction company Samsung C&T for $8.0 billion, featured in the sprawling corruption scandal that brought down ousted president Park Geun-hye.

The transaction -- which activist fund Elliott Associates and other shareholders said wilfully undervalued C&T -- was seen as a key step to ensuring the succession of Samsung heir Lee Jae-yong.

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It went through after the National Pension Service (NPS) -- C&T's biggest shareholder -- approved it.

Prosecutors accused Lee of seeking government backing for the deal, and at trial he was found guilty of bribery and sentenced to five years in prison, although most of his convictions were later overturned on appeal.