Samsung Electronics Co., Ltd. (005930) Loses $1 Billion In Market Value Following Veto On ITC Ban
Earlier this week, the Obama administration vetoed an International Trade Commission ban on the import, sale, and distribution of some Apple products including the iPhone 3GS, iPhone 4, and iPad 2 3G.
Samsung Electronics Co., Ltd. (KRX:005930) shareholders were not too thrilled with the news because the company’s share price dropped on the Korean exchange. The dip is estimated to have cost Samsung over $1 billion in market capitalization, according to The Wall Street Journal. Shares ended 0.9% lower at 1,274,00 won ($1,133) today.
The U.S. government is going to closely watch the U.S. International Trade Commission when the trade body decides on whether to ban U.S. imports of certain Samsung Galaxy mobile products. If the ITC decides to ban the Galaxy products subject to the decision on Friday, Samsung may be able to lobby for a similar veto. The products that are subject to getting banned include Samsung’s Galaxy S, Galaxy S II, and Galaxy Tab 10.1.
Over the weekend, Samsung said that the veto was a “disappointment.”