SEOUL, South Korea (AP) - A U.S. hedge fund is challenging a Samsung takeover deal designed to ensure control of the conglomerate passes to the grandson of its founder.

SEOUL, South Korea (AP) A U.S. hedge fund is challenging a Samsung takeover deal designed to ensure control of the conglomerate passes to the grandson of its founder.

Elliott Associates L.P., a U.S. hedge fund that is the third-largest shareholder in a Samsung group company Samsung C&T, said Tuesday it filed an injunction against the company and its board of directors to stop an "unlawful" takeover deal.

Elliott said the proposed takeover of Samsung C&T by Samsung's de facto holding company Cheil Industries is unfair to shareholders.

The hedge fund said last week it has acquired a 7.12 percent stake in Samsung C&T.

Samsung announced the takeover deal last month. Investors saw it as a corporate maneuver to give Lee Jae-yong, the founder's grandson, influence over Samsung Electronics Co.