Seoul: Samsung braces against possible hostile M&A bid

"There have been rumours that several foreign speculative investors might try to buy large stakes in Samsung Electronics. In case they try a hostile M&A, we are preparing measures," the executive said, speaking on the condition of anonymity.

He said Samsung gained information last month that Carl Ichan is planning a hostile takeover of the world's No 1 memory chipmaker.

Samsung's executive vice president for investor relations, Chu Woo-sik, also was quoted as saying by the Dow Jones Newswires that the company is "always wary of an appearance of such an attempt and we do have strategies to combat such a bid".

To keep off a hostile M&A, Samsung officials said they will try to retain the company's share prices "at a proper level".

Samsung Electronics has the largest market capitalisation among listed firms on the Korean main stock market.

The hostile M&A rumours and analysts' positive forecasts for the third quarter pushed shares of Samsung Electronics up by 41,000 won to 687,000 won on the Seoul bourse yesterday, leading the company to exceed 100 trillion-won (US$109 billion) in market capitalisation for the first time since September last year.

- By Kim Yoon-mi

The Korea Herald, Asia News Net