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US: Samsung pitches $8 billion merger for takeover by Cheil Industries

 |  June 30, 2015

Locked in a battle with an activist US hedge fund, the Samsung Group’s de facto holding company sought to win support for a proposed USD 8 billion merger with a sister firm by pledging measures to bolster post-deal shareholder returns.

Cheil Industries said in a statement on Tuesday that the company formed on completion of its all-stock takeover of Samsung C&T Corp would gradually increase its dividend payout ratio to 30 percent by 2020 and also consider share buybacks.

The announcement came as Samsung Group seeks to fend off a challenge from Samsung C&T shareholder Elliott, a hedge fund that opposes the merger and has filed two injunction requests with a South Korean court to block it. The court may issue rulings on both requests on Wednesday.

Full content: Reuters

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