* Investors hope for moves to pay inheritance tax-analysts
* Around $9 bln in tax estimated for stockholdings alone
* Samsung C&T key in controlling Samsung Elec-analysts
SEOUL, Oct 26 (Reuters) - Shares in Samsung Electronics Co
Ltd and affiliates rose on Monday after the death a day earlier
of Chairman Lee Kun-hee sparked hopes for stake sales, higher
dividends and long-awaited restructuring, analysts said.
Investors are betting that the imperatives of maintaining
Lee family control and paying inheritance tax - estimated at
about 10 trillion won ($8.9 billion) for listed stockholdings
alone - will be the catalyst for change, although analysts are
divided on what form that change will take.
Shares in Samsung C&T and Samsung Life Insurance
closed up 13.5% at a two-month high and 3.8%,
respectively, while shares in Samsung SDS also rose.
Samsung Electronics - the jewel in the group's crown
- finished 0.3% higher.
Son and heir apparent Jay Y. Lee has a 17.3% stake in
Samsung C&T, the de facto holding firm, while the late Lee was
the top shareholder of Samsung Life with 20.76% stake.
"The inheritance tax is outrageous, so family members might
have no choice but to sell stakes in some non-core firms" such
as Samsung Life, said NH Investment Securities analyst Kim
"It may be likely for Samsung C&T to consider increasing
dividends for the family to cover such a high inheritance tax,"
KB Securities analyst Jeong Dong-ik said.
Lee, 78, died on Sunday, six years after he was hospitalised
due to heart attack in 2014. Since then, Samsung carried out a
flurry of stake sales and restructuring to streamline the
sprawling conglomerate and cement the junior Lee's control.
Investors have long anticipated a further shake-up in the
event of Lee's death, hoping for gains from restructuring to
strengthen de facto holding company Samsung C&T's control of
Samsung Electronics, such as Samsung C&T buying an affiliate's
stake in the tech giant.
"At this point, it is difficult to expect when Samsung Group
will kick off with a restructuring process as Jay Y. Lee is
still facing trials, making it difficult for the group's
management to begin organisational changes," Jeong said.
Lee is in two trials for suspected accounting fraud and
stock price manipulation, as well as for his role in a bribery
scandal that triggered the impeachment of former South Korean
President Park Geun-hye. The second trial resumed hearings on
Lee did not attend the trial on Monday, as Samsung
executives joined other business and political leaders for the
second day of funeral services for his father.
($1 = 1,129.1800 won)
(Reporting by Joyce Lee and Hyunjoo Jin; Additional reporting
by Heekyong Yang and Daewoung Kim; Editing by Stephen Coates)