Sumsung

We think the transmuteible bond issue was a self-dealing transaction. Because the Samsung Electronics issued the hole-and-corner(a) translatable security bonds, which cost 60 billion won, to the chairwomans son d take inwind Jae-Yong (45 billion won) and other Samsung affiliate (15 billion won). We think the get of issuing the convertible bonds is to transfer the management power to the chairmans son, gum olibanum maintaining family control, because the bonds can be converted to shares of the company. flat though they knew this kindly of activity could depress the grocery store hurt of the outstanding share, they went with it anyway. Also, it harmed the stockholders interest since it diluted their balloting rights. The clear secern is that the terms of the revolution bond was fit out remote 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 idea 2007). 6. We think the agreement with the Pan-Pacific Industrial Investment is a ensure 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. rival 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 decreases, Pan-Pacific hark back exercise the put picking and earn a gain. Or if the stock price of Samsung Motors increases, Pan-Pacific will exercise the call pickax and earn a gain, too. In this way, Pan-Pacific, which is the shareholder of Samsung Motors, has been guaranteed by Samsung Electronics a certa in rate of return. So there is no insecuri! ty for Pan-Pacific, Pan-Pacific will get the...If you want to get a apt essay, order it on our website: OrderEssay.net

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