Glass Lewis & Co Investor Advisor says Samsung C&T Shareholders should Reject Takeover Bid from Cheil Industries Inc.
Glass Lewis & Co, the proxy advisory firm said that Shareholders of Samsung C&T Corp should not accept the takeover offer of $8 billion from Cheil Industries Inc. The deal may prove exceeding advantageous for Cheil Industries Inc which is the de facto holding company of Samsung conglomerate.
Glass Lewis said in a report which was dated as July 1, the terms of the deal proposed are "profoundly unattractive" for the investors of C&T and are "exceedingly advantageous" the shareholder's of Cheil. The report said that the investors of C&T should persuade the company's board to mull over other available alternatives.
Glass Lewis's report termed the merger deal proposal short and unclear saying that it had "questionable strategic merits." The report also supported Elliott Associates LP, the U.S. hedge fund which is also making an effort to stop the merger. It criticized the financial terms put in by the offer.
Days after, Cheil Industries and Samsung C&T announced their plan of a merge in May in an all-stock deal, Elliott filed an objection in the court looking to block the deal and said that the deal undervalued the construction division of the largest conglomerate in South Korea.
The motion from Elliot was rejected by a South Korean court on Wednesday.
New Zealand News
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