Samsung vote pits South Korea's richest family against small shareholders, foreign funds

A vote on combining companies in the Samsung empire is pitting South Korea's richest family against small shareholders and foreign investors.

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Shareholders at Samsung C&T will vote Friday on the proposed takeover of the company by another Samsung company.

The plan is crucial for a once-in-a-generation leadership shift at Samsung.

If the deal is approved, Samsung heir Lee Jae-yong will become the biggest shareholder in the new entity and take control of C&T's 4.1 percent stake in flagship company Samsung Electronics.

The vote is a close contest. Those opposing it say minority shareholders are being ripped off.

Elliott Associates, C&T's third-largest shareholder, unsuccessfully filed lawsuits to stop the takeover. Foreign pension funds and thousands of small shareholders are also against it.