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The family already controls Cheil and taking over C&T would solidify its grip on the entire conglomerate because the affiliate holds more than US$10bil (RM38.09bil) in shares of Samsung Group units.

The fund, Elliott, is opposing a takeover deal between Samsung companies that critics say will ensure Samsung’s founding family retains outsized influence over the conglomerate.

Elliott’s opposition to the takeover, which has swelled to include small South Korean shareholders and pension funds from Canada and the Netherlands, is an unexpected challenge to the Lee family’s power.

Shareholders at construction company Samsung C&T will vote Friday on the proposed takeover of it by another Samsung company, Cheil Industries.

Lee is a major shareholder in Cheil Industries, which is the Samsung Group’s de facto holding company.

Spearheading opposition to the merger is the USA hedge fund Elliott Associates, which is the third-largest shareholder in C&T and has unsuccessfully moved the courts to block the deal on the grounds that it undervalues the construction firm.

Lee family, which is controlling the Samsung conglomerate, has achieved a big victory over Elliot Associates LP when shareholders gave their approval for the $8 billion merger of two affiliates.

The merger between the Samsung conglomerate’s Cheil Industries and construction unit Samsung C&T Corp. will give Lee a 16.5% stake in the merged firm, which is planning to keep the Samsung C&T name and relist in Korea on September 15th of this year.

The measures came as the 8.9 trillion-won (US$7.92 billion) proposal to take over Samsung C&T has been opposed by USA hedge fund Elliott Associates, which claimed that the merger is against shareholders’ interests and designed to help the leadership transfer at the...