(Reuters) — Samsung Electronics Co Ltd on Friday said it will not accept a captivation aggregation anatomy for now, abnegation demands from U.S. activist barrier armamentarium Elliott Management and putting off a long-anticipated restructuring.
Investors had accustomed the all-around baton in smartphones and anamnesis chips to accept a captivation aggregation structure, as the founding Lee ancestors tries to coalesce its ascendancy of the Samsung Accumulation flagship.
But Chief Executive Kwon Oh-hyun told the anniversary actor affair this was absurd at present, abbreviating some investors’ hopes that an advancing analysis of the company’s alignment will advance to Samsung ambience up a captivation company.
“Samsung had been adage the analysis would advance after issues, so the bazaar had accustomed that, but now they are adage the alteration will be difficult,” said CJ Heo, a armamentarium administrator at Alpha Asset Management.
“This will aching broker affect for a while.”
The South Korean tech behemothic acclimated the accepted affair to accord investors a faculty of how it is aing the mooted restructuring, which has been befuddled into agnosticism by a political aspersion that has affected Samsung Accumulation baton Jay Y. Lee.
“There are abrogating furnishings that would arise from transitioning to a captivation aggregation so it does not arise it will be accessible to do so at present,” Kwon said, after elaborating what those negatives were.
The aggregation is continuing its analysis and will address the after-effects to shareholders back it is completed, he said.
The comments beatific shares of Samsung C&T Corp bottomward added than 7 percent in afternoon trade. Some analysts believed the Lee ancestors would seek to absorb C&T, Samsung Group’s de facto captivation aggregation that Lee brood control, with the Samsung Electronics captivation company.
Elliott in October alleged for Samsung Electronics to accept a captivation aggregation anatomy by agreeable itself in two and pay out a 30 abundance won ($26.75 billion) appropriate dividend.
Samsung appear the analysis in November but until now has backward aloof on the captivation anatomy issue.
An Elliott agent beneath to comment.
Some investors said any restructuring appeared to accept been delayed with Lee’s arrest on accuse of bribery, abstraction and added offences in a bribery aspersion that led to the abatement of President Park Geun-hye from office.
The 48-year-old baton of Samsung Accumulation and Samsung Electronics’ carnality administrator could face added than 20 years in prison. He denies the allegations.
The political agitation has appear at a acute time for the Lee family, with Samsung Accumulation ancestor Lee Kun-hee, 75, in hospital back a May 2014 affection advance and his accouchement adverse a multi-billion dollar bequest tax back he dies.
Lee Kun-hee’s breakable bloom appears to accept hastened his heirs’ efforts to restructure the accumulation and bind their anchor on key affiliates such as Samsung Electronics.
Many Samsung Electronics investors achievement a restructuring will accumulate the company, advance its babyminding and addition its value.
($1 = 1,121.3000 won)
(Reporting by Se Young Lee; added advertisement by Dahee Kim and Heekyong Yang; Editing by Stephen Coates)
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