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Samsung battle escalates as Lee family ally increases stake
[SEOUL] The struggle to control a key company within the Samsung Group escalated Wednesday as KCC Corp increased its stake in the business empire to support South Korea's most- powerful family.
KCC will buy 8.99 million shares of Samsung C&T Corp, including all its treasury shares, according to regulatory filings. The transaction is valued at 674.3 billion won, based on Wednesday's closing price of 75,000 won per share.
The sale was made to secure a close shareholder to help with the merger plan and to secure liquidity of the proposed merger between Samsung C&T and Cheil Industries Inc, Samsung C&T said in an e-mail.
The transaction comes as Elliott Associates LP, a hedge fund controlled by Paul Elliott Singer, tries to block the proposed merger, saying it isn't in the best interests of shareholders.
Samsung's founding Lee family wants to use the merger as part of its plan for boosting control of South Korea's biggest conglomerate. Elliott has filed an injunction to stop Cheil from completing the bid.