Elliott Associates, a U.S. hedge fund, has dropped a lawsuit filed against South Korea’s Samsung C&T Corp., ending their nine months of dispute over the company’s merger with Cheil Industries Inc.

The hedge fund is due to leave the Korean market by handing over its 4.95 percent interest in Samsung C&T to Samsung C&T.

An unnamed industry official with knowledge of the matter said on Thursday Elliott Associates and Samsung C&T reached an agreement on the stock price of shares held by the hedge fund.

It is not yet known how much the hedge fund will sell the shares but market watchers the deal will be close to 443 billion won ($380 million), about 57,234 won per share, which Samsung C&T initially offered to buy back shares from opposing shareholders.

It was assumed Elliott bought 11.12 million legacy Samsung C&T shares for 60,370 won apiece on average, and if it sells the shares at 57,234 won apiece, its loss would amount to 35 billion won.

Elliott acquired a 7.12 percent stake in legacy Samsung C&T last June, opposing the company’s proposed merger plan, while demanding dividends. It also filed a series of suits to block the merger, nullify Samsung C&T’s shareholder meeting and ban the company’s disposition of treasury stocks.

But Elliott lost a court battle and its shareholder proposal was rejected. In July, the hedge fund exercised its right to sell its interest to Samsung C&T but it was not satisfied with Samsung C&T’s offer price, demanding it should be raised at an arbitration court.

But the court ruled in favor of Samsung C&T, pressuring the hedge fund to agree with Samsung C&T over the share price and drop suits against Samsung C&T on Wednesday.

In February, the Korean financial authorities reported to prosecutors that the hedge fund violated a 5 percent rule that requires any shareholder whose interest exceeds 5 percent in listed companies to disclose the fact.

By Han Woo-ram

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