A PYMNTS Company

South Korea: US fund seeks damages for Samsung merger

By  |  July 3, 2018

New York-based hedge fund Mason Capital Management has filed a legal claim seeking at least US$175 million from the South Korean government as compensation for damages it says it sustained from a 2015 merger of two Samsung Group affiliates, reported the Financial Times.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Its action follows a similar move by US activist fund Elliott Management, which in May initiated an international legal process to seek US$670 million in compensation from Seoul over its role in the merger of Samsung C&T and Cheil Industries.

    Seoul’s justice ministry said on Tuesday, July 3, that Mason Capital filed a notice of intent on June 7, seeking a resolution through the Investor-State Dispute Settlement mechanism.

    The hedge fund claimed in the notice that it suffered huge losses due to Seoul’s undue influence over the decision of the country’s state-run pension fund in the merger process and Seoul’s act was in breach of South Korea’s free trade agreement with the US. The National Pension Service, a key shareholder of Samsung C&T, supported the contentious deal, blocking Elliott’s attempt against the US$8 billion merger.

    Full Content: Financial Times
    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.