Seoul - A US hedge fund is challenging a Samsung takeover deal designed to ensure control of the conglomerate passes to the grandson of its founder.
Elliott Associates LP, a U.S. hedge fund that is the third-largest shareholder in a Samsung group company Samsung C&T, said on Tuesday it filed an injunction against the company and its board of directors to stop an "unlawful" takeover deal.
Elliott said the proposed takeover of Samsung C&T by Samsung's de facto holding company Cheil Industries is unfair to shareholders.
The hedge fund said last week it has acquired a 7.12% stake in Samsung C&T.
Samsung announced the takeover deal in May. Investors saw it as a corporate manoeuvre to give Lee Jae-yong, the founder's grandson, influence over Samsung Electronics.