Samsung Electronics' South Korean labor union said on Friday it remained committed to a planned strike starting next week, even after the company proposed resuming pay talks without conditions, sending shares down as much as 5.9%.
Government-mediated negotiations collapsed this week. The union plans an 18-day strike from May 21, which could disrupt production at the world's biggest memory chipmaker.
Analysts attribute the share decline to growing uncertainty over the strike's potential impact on production. NH Investment & Securities' Ryu Young-ho said: "There appears to be rising concerns over delivery reliability if the strike takes place."
Samsung confirmed its offer of unconditional talks but did not comment further. The South Korean government has voiced concerns about the strike's impact on the economy.
JPMorgan estimated the impact on Samsung's operating profit at 21 trillion won to 31 trillion won ($14.08 billion to $20.79 billion). Shares were trading down 5.2%.
