[THE INVESTOR] US activist hedge fund Elliott Management on May 2 confirmed it is seeking compensation for damages it suffered following the Korean government’s unlawful intervention in the controversial merger of Samsung C&T and Cheil Industries back in 2015.
Elliott vs. Seoul, round 2
FTC chief calls Elliott‘s demands ‘illegal’
Industry sources say the firm’s billionaire Chairman Peter Singer already sent a notice of intent to Korea’s Justice Ministry last month to ask for a resolution. If they fail to reach an agreement within three months, Elliott can file a suit against the Korean government under a free trade treaty between the two countries.
Below is the firm’s official statement.
Elliott is seeking to negotiate with the Republic of Korea regarding compensation for Elliott’s damages arising from the former administration’s unlawful intervention in the merger of Samsung C&T and Cheil Industries. In the Korea-US Free Trade Agreement, the ROK committed to compensating investors who are victimized by breaches of the treaty. The actions by the former administration and the National Pension Service were in breach of KORUS FTA and constituted manifestly unfair and inequitable treatment of Elliott.
The scandal that has unfolded around the merger has led to the impeachment and removal of then-President Park, as well as a number of criminal trials and convictions in ROK domestic courts, including those of senior Samsung executives, the former minister of health and welfare, and the former chief investment officer of the NPS.
The facts revealed since the 2015 merger are clear: the web of corruption, reaching from the president herself down to the NPS, unfairly damaged Elliott and other Samsung C&T shareholders.
By Lee Ji-yoon (email@example.com)