samsung- a great american company Options

[mack4289]

Would the Korean gov allow this to happen?

http://joongangdaily.joins.com/article/view.asp?aid=2878028

"Samsung Electronics Co., the world’s largest producer of liquid crystal display panels, suffered a number of disasters yesterday as it posted its smallest profit in four years and speculation spread that U.S. investor Carl Icahn is set to make a hostile takeover bid on the company. "

[shaliq]

NO, NO, NO!! Bad news... Hope the Korean gov. don't allow this!

[mack4289]

Why would this be bad for Korea? The article says that shares of Samsung went up 6.4% because of the takeover rumors even though it had just turned its lowest profit in 4 years.

[justanotherday]

there is no way carl icahn can do anything with samsung. it became the best in the world on its own. carl icahn can't even turn around GM. An auto company, which is much less technolgically intensive than electronics.

if you want good technology, go with the technology experts. its kind of a no brainer.

[Helanio]

God no.......

[frozen_korean]

So? The employees are still Korean and the technology is Korean and all the profits go to South Korea in the end.

[mack4289]

I'd say that Korea does benefit from people like Icahn pushing their companies to run more efficiently. Not all of Samsung's profits stay in Korea, though:

http://www.iht.com/articles/ap/2007/07/13/...rea-Samsung.php

"Foreign investors owned 49.26 percent of [Samsung's] shares at the end of Thursday's session, the most recent data available. Samsung shares have risen 12 percent this year."

Nor are all its employees Korean:

"Samsung Electro-Mechanics Co., Korea’s No. 1 electronics parts maker, said yesterday that it will move its remaining domestic camera module production lines for mobile phones to China by the end of the year to cut production costs and meet rising demand in the Chinese market.

“The relocation efforts have been under way since earlier this year, and the process will be completed this year,” said Lee Jun-ho, the company’s spokesperson.

Samsung Electro-Mechanics, a unit of Samsung Group, already produces 70 percent of its camera modules at its Chinese plant in Tianjin, while 30 percent are made at its local line in Busan."

[frozen_korean]

So American investors give Samsung financial support as well as Samsung giving them the interest on shares. Its not even news. Most successful companies have foreign investors, this isnt new at all man. Also putting new production lines in China, etc is called Multi national corporations. In order for a business to even start making billions in profits, it needs to have production lines/offices/etc in different countries to maximise its sales and marketing. If your calling Samsung an "American" company just because it has foreign investors, then you might as well call all successful mutli billion dollar businesses "American". I bet your some American supremist trying to say Americans own everything. You're living in a world of your own.

This post has been edited by frozen_korean: Jul 17 2007, 03:36 AM

[jebusrocks]

We have this thing called pride, I'm not sure if you guys ever heard of this word, especially after the 02 World Cup. Samsung is one of the best things that represent Korea (although in a recent survey around 80% of college students in US thought Samsung was Japanese,,), it was a very small company like Korea, and then grew like Korea into World Economic Power (new word me thinks). Of all things, why don't they buy Sony?? That company has been on a slump for like 3 years

[mack4289]

Apparently, Microsoft considered or is still considering buying out Sony http://www.bonafidereviews.com/article.php?id=148.

About the pride issue-Icahn's takeover attempt should be a boost to Korea's pride in Samsung. The article makes it sounds like the takeover is good for Samsung. Foreign investors already own almost half so having an American majority shareholder wouldn't be a drastic change. If Icahn is a smart businessman (and he has a reputation for being one) he will leave much of the management of the company in Korean hands, since Samsung knows Korean expertise is a vital part of their success.

Also, Icahn doesn't try to buy out failing companies. He buys out companies that he thinks aren't exploiting their full potential. So Samsung should regard the takeover attempt as both a compliment and a insult- a compliment to the companies' capabilities but an insult to the company's efforts to fulfill that promise.

Another reason the takeover is good for Samsung is the attitude it forces the Samsung execs to adopt:

http://www.forbes.com/markets/2007/07/13/s...13markets1.html

"However, Chosun Ilbo quoted another anonymous Samsung executive who was worried that if Samsung’s market capitalization were to sink by 50% to less than 500 trillion won ($54 billion), the amount needed for a takeover would decline to 150 trillion won ($16 billion).

The executive stressed the need to maintain its share price at an “appropriate level” to guard against an attack."

So either Samsung pushes harder to maintain its market share or it becomes much more vulnerable to a takeover. What Icahn is doing is really a helpful kick in the as*.

[jebusrocks]

The richest man in the world got his money by saving companies that were near bankrupcy, and another good example of that is the former Chairman of Daewoo.

If Samsung is bought by an American, I'd be pssed.

[moobie]

There's no reason to let him take majority share.

[CoreasFinest]

Do you know how hard this will be lol. You talk like its a simple matter of buying loads of stock and becoming an owner.

[mack4289]

It sounds like the takeover isn't happening:

http://joongangdaily.joins.com/article/view.asp?aid=2878442

"The share price of Samsung Electronics Co. recently surged on the rumor that Carl Icahn was planning a hostile takeover of the global technology bellwether. The billionaire U.S. investor denied the rumors last week."