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New DelhiI
SEPTEMBER 12, 2006
Samsung goes court's way to stop Ingram – Tech Pacific merger
The Korean electronics major has knocked the doors of Bangalore High Court in
order to oppose the amalgamation process of Tech Pacific with Ingram Micro India
With an aim to halt the process of merger between US based distribution
powerhouse Ingram Micro and Australian firm Tech Pacific, Samsung Electronics
India has filed a case against Ingram Micro at the Bangalore High Court.
While the case has already been initiated, the Korean electronics major feels
that the merger of these two entities will not be in the best interest of the
'creditors'. "We are opposing the merger of Ingram with Tech Pacific in
the Bangalore High Court, because as a creditor of both the Companies, we feel
that the merger will not be in the best interest of the creditors,” informed
Samsung's India spokesperson.
It is interesting to note that Ingram Micro acquired Tech Pacific for a
consideration of about $ 493 million in late 2004, however the merger process is
still going on and has already involved a lot of re-structuring for the merged
entity within India as well as globally.
Though, full details of this Samsung-Ingram feud are not known as the mater
is now subjudice, but sources close to the industry feel that it will not be
easy for Ingram to proceed further with its integration related to merger if the
court gives a ruling against it.
On the other hand when contacted Ingram Micro India's MD, K Jaishankar
informed that as per the directions of the High Court of Karnataka, an unsecured
creditors meeting was held in Bangalore recently in order to seek their approval
for the amalgamation of Ingram with Tech Pacific. Samsung was the sole dissenter
here.
“This was being done as per the directions of the High Court of Karnataka
and Samsung was the sole dissenter for this amalgamation. All other creditors
who participated have approved the Scheme of Amalgamation. This has been
duly recorded and presented to the High Court and the matter is now pending
approval from High Court,” he added.
According to industry experts Samsung has taken this step as part of its
right to object to a merger process in case the merged entity has any payment
related issues. “It is a normal process for any merger. In this case Samsung
might be having big payment issues running into crores when it comes to Tech
Pacific, so obviously the company will move forward to object a merger for Tech
Pacific with Ingram,” adds an industry source on conditions of anonymity. Page(s) 1
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