Icahn may plan hostile bid for Samsung Electronics

SEOUL, South Korea - Activist US investor Carl Icahn may be planning a hostile takeover bid for Samsung Electronics Co., the Chosun Ilbo newspaper reported Friday, citing an unnamed high-ranking official at Samsung.

By (AP)

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Published: Fri 13 Jul 2007, 4:41 PM

Last updated: Sat 4 Apr 2015, 10:20 PM

Samsung Electronics is mapping out defensive measures against potential hostile takeover bids by the US billionaire investor, and possibly other foreign buyout funds, the report also said.

Should someone try to do something like that we have appropriate sets of strategy in place that we will implement that would be effective against those attempts,’ Chu Woo-sik, executive vice president and head of Samsung Electronics investor relations said in a conference call after the company released its earnings Friday.

But he also said the company isn’t aware of any attempt to takeover the company.

Samsung Electronics is South Korea’s most valuable company with a market capitalization of 101 trillion won (US$110 billion; Ð80 billion) as of the close of trading Friday, according to the Korea Exchange.

Foreign investors owned 49.26 percent of its shares at the end of Thursday’s session, the most recent data available.

Samsung Electronics said Friday that its second-quarter net profit fell 5 percent from a year ago to 1.42 trillion won (US$1.55 billion; Ð1.12 billion) on price declines for its mainstay computer memory chips. Sales rose 3.6 percent during the quarter from the same period last year.

The company’s shares surged 6.4 percent to 687,000 won (US$749; Ð544) Friday amid investor expectations for stronger business performance later in the year as well as on the news report that Icahn may be considering a bid for the company.

Samsung shares have risen 12 percent this year.

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