The U.S. hedge fund Elliott Associates has secured global depository receipts (GDRs) which were issued based on shares of Samsung C&T.
Elliott publicly announced on Aug. 11 that it is holding 10,000 shares of Samsung C&T in the form of GDRs. GDRs are securities that companies issue abroad for foreign investors. After the dispute with Elliott, Samsung C&T decided to delist its GDRs traded on the London Stock Exchange in July. Despite the decision, however, Elliott bought an additional 10,000 shares and switched off into GDRs.
Banking investment industry sources say that Elliott, which has successively lost its lawsuits against Samsung, including the request for a preliminary injunction for the prohibition of shareholder meetings for the merger, has decided that there is no chance in Korea and is considering international litigation. In fact, when a company holds a GDR, it has legal rights in other countries as a shareholder, unlike in Korea.
An official from the industry said, “There is a high possibility that Elliott has secured the GDRs in order to file international lawsuits against Samsung C&T. The company, which was completely defeated by Samsung in the suits for this merger, is trying to restore its pride and to interfere with Samsung with the merger.”