U.S. activist hedge fund Elliott said on Tuesday it has filed a request in a Seoul court seeking an injunction against a proposed $8 billion takeover by a key Samsung Group company of another Samsung firm, escalating attempts to block a deal designed to cement succession at the South Korean conglomerate.

In a rare display of investor activism in South Korea, Elliott last week publicly opposed Cheil Industries Inc’s all-shares offer for Samsung C&T Corp. The fund disclosed it owns 7.1 percent of Samsung C&T, making it the construction firm’s third-largest shareholder, and said the deal isn’t fair to Samsung C&T investors.

The fund poses a challenge to a merger that investors and analysts believe is crucial to a smooth transfer of power at South Korea’s biggest family-run conglomerate, after patriarch Lee Kun-hee, 73, fell ill a year ago.

The Cheil-Samsung C&T merger would consolidate stakes in key affiliates like tech giant Samsung Electronics Co Ltd under a single vehicle under firm control of heir apparent Jay Y. Lee and his sisters. But Elliot reiterated its view on Tuesday that the deal is unfair to Samsung C&T investors.

“Elliott has therefore taken the step today of commencing legal proceedings for an injunction against Samsung C&T and its directors in order to seek to prevent the proposed takeover from going ahead,” the fund said in a statement. A spokeswoman said injunction filings have been submitted to the Seoul Central District Court.

A Samsung C&T spokesman did not immediately comment, while a Cheil Industries spokesman declined to comment. A Samsung Group spokeswoman referred queries on the subject to Samsung C&T.

(Reporting by Se Young Lee; Additional reporting by Joyce Lee; Editing by Miral Fahmy and Kenneth Maxwell)

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