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Komfie Manalo, Opalesque Asia:

The $26bn American hedge fund Elliott Associates on Tuesday file an injunction before a South Korean court to stop the planned takeover deal between Samsung companies to enable Samsung chairman Lee Kun-hee to shift leadership in the company to his only son, Jay-yong, vice president of Samsung Electronics Co.

Elliott, the third largest shareholder in Samsung’s construction unit, Samsung C&T, told the court that the takeover deal was "unlawful," reported the Associated Press. Elliott is challenging Samsung Group’s plan to takeover Samsung C&T by the company’s de facto holding company Cheil Industries.

Lee is the largest stockholder in Cheil Industries and Samsung C&T owns a 4.1 stake in Samsung Electronics. The merger is a critical step to enable Jay-yong to acquire at least 16.5% at one of South Korea’s biggest family-controlled conglomerate, or chaebol.

According to the hedge fund manager, the takeover deal is disadvantageous to shareholders and described the deal as "significantly undervaluing" Samsung C&T and said that the terms of agreement as "neither fair nor in the best interests" of its shareholders.

Since Elliott raised its stake in Samsung C&T to 7.1% last week, the hedge fund manager has ......................

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