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Samsung Electronics balks at rejiggering its structure

Jailed leader, presidential election make 'chaebol' reluctant to change

Samsung Electronics CEO Kwon Oh-hyun speaks to shareholders in Seoul on March 24. (Courtesy of Samsung Electronics)

SEOUL -- Samsung Electronics on Friday signaled it wants to hold off on shifting to a holding company structure, dashing investors' expectations for a change many believe would boost the top smartphone maker's market value.

"As we expect negative effects from the transition to a holding company, it seems the change will not be realized" for now, CEO Kwon Oh-hyun told a general shareholders meeting. Calling the transformation a "very important decision," he said the company is still "reviewing a wide range of aspects, including legal and tax issues."

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