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Samsung Profit Down, Stock Up On Takeover Report

7/13/2007 01:42:00 PM Eastern

Seoul, South Korea — Samsung Electronics reported today its second quarter net profit fell 5 percent from the same period last year, but its stock rocketed upward on reports in the Korean newspaper Chosun Ilbo of a takeover attempt by Carl Icahn.

For the quarter, ended June 30, Samsung generated $1.55 billion in profit on sales that rose 3.7 percent $16 billion. The company cited falling sales of memory products as the primary factory in the profit fall off, but it expects a second half turnaround.

"We are very, very optimistic about the second half, very sanguine in our outlook,” Samsung executives said on a conference call. "We are in fact expecting all of our major businesses to experience very high level of demand recovery starting from Q3."

The company denied knowledge of any takeover attempt, but said in an Associated Press report that it has a strategy in place to block any attempt to take over the corporation.

Samsung did not return TWICE requests for comment as this was posted.