Billionaire investor Paul Singer, founder and CEO of Elliot Management Corporation, is proving himself a trailblazer for investors fighting for shareholders' rights in an arena that few have dared to enter - the most prominent, close-knit, family-run firms in Asia.
Singer's hedge fund, $26 billion-worth Elliot Management, has set its sights on South Korea's Lee family, founders of the Samsung Group, according to Reuters. The Lee family is currently attempting a merger between its two business empires, Samsung C&T and Cheil Industries.
Singapore-based John Chessher, CEO of Cenkos Securities, an independent securities firm, believes that investor activism is a trend that will affect the business world positively.
"Shareholder activism is going to be an increasing theme in Asia as more Asian companies access Western capital markets," he said.
"These kind of cases hopefully will bring about greater transparency," Chessher added.
Singer outlined in a presentation on Thursday his grievances with the Lee family and their attempt to merge Samsung C&T with Cheil Industries, their much larger holding company, Business Insider reported.
"Elliott continues to view the terms of the proposed takeover as unfair, unlawful, and significantly damaging to the interests of Samsung C&T shareholders," Elliott said in a statement.
Singer's hedge fund has a 7 percent stake in Samsung C&T, and it recognizes that the merger the Lees are trying to initiate ensures a smooth succession between the family's generations. However, Singer believes that the $9 billion sale price massively undervalues Samsung C&T and overvalues Cheil Industries, according to Business Insisder.
Despite the dissenting voices from activist investors, Samsung C&T has stated that it will still go in with the merger.
