Sumsung

We think the transmuteible bond issue was a self-dealing transaction. Because the Samsung Electronics issued the hole-and-corner(a) sofa bed bonds, which charge 60 billion won, to the chairwomans son d avowwind Jae-Yong (45 billion won) and some other Samsung affiliate (15 billion won). We think the get of issuing the sofa bed bonds is to transfer the management power to the chairmans son, therefrom maintaining family control, because the bonds can be converted to shares of the company. flat though they knew this kind-hearted of activity could depress the grocery hurt of the outstanding share, they went with it anyway. Also, it harmed the shareowners interest since it diluted their balloting rights. The clear indorse is that the toll of the revolution bond was fit out out-of-the-way(prenominal) lower than the market price at that time. The conversion price of the convertible bonds was 7700 won and the holder was able to convert this convertible bond into about 1 .25 million shares of common stock. At that time, the market price of the common stock ranges from 85000 to 230000 won per share. (Annual musical question 2007). 6. We think the agreement with the Pan-Pacific Industrial Investment is a prepare investment of Samsung Electronics into Samsung Motors.

Samsung Electronics has entered into a joint-venture agreement with Pan-Pacific Industrial Investments, which is the shareholder of Samsung Motors. suss out to the agreement, Samsung Electronics is authorized to sell or buy shares of Samsung Motors, which is actually own by Pan-Pacific at certain exercise price on or before the maturity date. If the stock price of Samsung Motors decre ases, Pan-Pacific erupt exercise the put ! picking and earn a gain. Or if the stock price of Samsung Motors increases, Pan-Pacific will exercise the call cream and earn a gain, too. In this way, Pan-Pacific, which is the shareholder of Samsung Motors, has been guaranteed by Samsung Electronics a certain rate of return. So there is no peril for Pan-Pacific, Pan-Pacific will get the...If you want to get a technical essay, order it on our website: OrderEssay.net

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