Seoul, Apr 29: South Korea's largest family-run conglomerate, the Samsung Group, has warned that its lucrative electronics arm could be the target for a hostile takeover by foreign investors, officials said.
The group is set to submit a report to the Fair Trade Commission (FTC) in which it says that Samsung Electronics, the world's largest microchip maker, is exposed to the risk of being taken over by foreign shareholders, an FTC spokesman said.
According to the report, which was carried by the Mail Business Daily on Wednesday, an unidentified foreign investor has even suggested that Samsung Electronics move its headquarters out of South Korea to the United States.
The report warned that a hostile takeover could become a reality given that foreign shareholders hold a combined stake of some 60 per cent in the company.
Samsung Group Chairman Lee Kun-Hee and allied interests hold a 17.3 per cent stake in Samsung Electronics but their voting rights will be cut to only 8.8 per cent under new regulations on the chaebol, or conglomerates which still figure large in South Korea's corporate landscape.
For their part, analysts said a hostile takeover of Samsung Electronics remains a remote possibility as long as foreign investors are satisfied with the current performance of the company.
Bureau Report
