Samsung C&T Corp. conducted a massive advertisement blitz to drum up shareholder support for a proposed merger with another unit of Samsung Group on Monday, days ahead of a crucial shareholder meeting.

Samsung C&T shareholders are scheduled to meet on Friday to cast ballots on Cheil Industries Inc.'s proposal to take over the builder in an all-stock deal. Cheil Industries is the de facto holding firm of the top family-controlled conglomerate in South Korea.

"We desperately ask shareholders of Samsung C&T," read the advertisement run by more than 100 local newspapers. Nearly every South Korean newspaper ran the ad on the first page, with some even choosing to carry only Samsung's statement on the front.

"Unfortunately, Elliott is trying to nullify the proposed merger in the shareholder meeting. Must the future of Samsung C&T and Cheil Industries be disturbed like this?" it also said, asking for shareholders to delegate voting rights.

Samsung's latest media campaign comes as the proposed merger must win approval from shareholders with two-thirds of the voting rights and a third of outstanding shares.

But its plan has been challenged by the U.S. hedge fund Elliott Associates, Samsung C&T's third-largest shareholder, which claimed that the merger ratio -- 0.35 Cheil share for 1 C&T share -- is disadvantageous for Samsung C&T shareholders.

Samsung C&T must secure 47 percent support to have the plan pass at the meeting, given that the attendance rate will likely stand at 70 percent for the upcoming meeting. If the rate rises to 80 percent, the South Korean firm must win 53.33 percent approval.

Samsung C&T has secured 19.88 percent of friendly shares, including the 5.96 percent of treasury shares sold to KCC Corp.

The National Pension Service, the biggest single holder with an 11.21 percent stake, is anticipated to lend support to Samsung, although it has not officially announced its stance.

Thus, it is important for Samsung to secure the 26.41 percent held by non-Elliott foreign holders and 24.33 percent from retail investors, market watchers said.

The merger, meanwhile, is widely seen as aimed at paving the way for the transfer of power from hospitalized tycoon Lee Kun-hee, South Korea's richest man, to his only son, Jay-yong.

Once the merger is completed, Jay-yong will become the biggest shareholder of the merged entity with a 16.5 percent stake and rise to the top of the group's hierarchy. The new merged entity will keep the name Samsung C&T as it is one of the original arms of Samsung Group.

Cheil Industries, meanwhile, will also hold its own shareholders' meeting Friday. The meetings are scheduled to start at 9:00 a.m. (Yonhap)