Shouty investor Elliot trains guns on Samsung merger Activist hedge fund Elliot Associates is to take legal action against Samsung over its merger, widely seen as a move to consolidate the power of the South Korean firm's controlling Lee family. Last month, Sammy announced its merger with fashion, leisure and construction biz Cheil Industries, a company in which the tech giant …
piss right off.
"Activist" investors, especially the ones who run hedge funds; are the worst kind of scum. The term "parasites" is completely appropriate for them.
They never made an honest buck in their lives, bully companies and boards for a living and have the scruples of Dr. Mengele. They are only in it for the money and never "built" a business in their lives.
They don't speak for the vast majority of shareholders, only themselves. Their legal opinion is always colored in favor of their own interests.
You are wrong. They are useful way of holding parasitic or egomaniac managers (and controlling families) to account.
A good recent example is the Alliance Trust debacle in the UK, where an activist has been pointing out that the company is strategically inept, poorly run and yet rewarding its managers rather well.
You are wrong. They are useful way of holding parasitic or egomaniac managers (and controlling families) to account.
Thing is, "activist" investor these days is just the politically correct moniker for what used to be called a "corporate raider". Think Carl Icahn. So we're actually wary about this "investor"...
The activist in the Alliance case is Elliott, so still a potential "corporate raider". And yet quite right to challenge Alliance.
Look at the argument of the case, rather than the actor involved.
In the case of a chaebol like Samsung it's a given that corporate governance will be in the toilet, so Elliott should be welcomed.
Kettle meet pot, pot meet kettle
On one side, Icahn will be told to piss right off. Korea is not USA, it does not matter how much you shout, you are not going to outshout your real voting rights weight which is insufficient to change the company direction.
On another side, the business moves by the Chaebol have little to do with shareholder and business value so they and Icahn are kind'a made for each other.
As (to judge from the text) they acquired the 7.1% stake after the merger was announced, what right do they have to sue to get the merger blocked ? They knew about the merger before they bought the stake so they should have no claim that it harms their interest as a shareholder.
What right?
The right that billions upon billions of cash gives you, nothing else.
With that kind of cash, you can buy anything, literally.
This parasite and his fellow parasites do this for a living.
Have a look at what he does with third world countries' non-performing debt.
Scoops up the debt up pennies on the dollar and then, with the help of Manhattan/Wall Street friendly judges, sues to cash in at 100% face value plus interests.
He has gotten away with it more than once. (South America, Africa, etc.)
Of course he purchased his stake in Samsung 'after' the merger was announced: now, he'll sue and blackmail the company into buying his 7.1% + a fee to 'go away'.
Elliot represents 'all' that's wrong with capitalism, banks and finances in the world today.
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