South Korea: Prosecutors probe Elliott Management over Samsung fight

Activist investor Elliott Management is being probed by prosecutors in South Korea, over the fight it initiated to oppose the merger of Samsung C&T and Cheil Industries in 2015.

Meanwhile, Waterstones owner Elliott Management has revealed it is seeking compensation from South Korea, for damages which it alleges it suffered when the country’s former government intervened in the merger.

An official with the South Korean prosecutors confirmed on May 3 that they were examining whether Elliott breached disclosure rules when it acquired shares in Samsung through total return swaps.

Elliott Management denied any wrongdoing and said it had cooperated with South Korean prosecutors regarding the case. “Elliott used swaps lawfully and in a manner consistent with Korean law,” the fund said in a statement, referring to the process of its share purchase.

The US fund has said it was seeking to negotiate with the government regarding compensation for its damages over a former South Korean administration’s intervention in the merger.

It has begun a legal dispute with the South Korean government over the 2015 tie-up, a government official said on Tuesday, May 1.

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