ID :
24395
Tue, 10/14/2008 - 15:35
Auther :
Shortlink :
http://m.oananews.org//node/24395
The shortlink copeid
POSCO says it will bid alone for Daewoo Shipbuilding
SEOUL, Oct. 14 (Yonhap) -- POSCO Co., the world's fourth-largest steelmaker, said Tuesday it will continue to make a solo bid for a controlling stake in Daewoo Shipbuilding & Marine Engineering Co., even after GS Group abruptly pulled out of its consortium a day ago.
POSCO and GS, an energy and retail conglomerate, jointly submitted a final bid to
buy a 50.4 percent stake in the world's No. 3 shipyard on Monday, but GS dropped
out hours after the final offer was made.
"Although GS put an end to the consortium and withdrew from the bid, POSCO
decided to continue to push for a proposed acquisition of Daewoo Shipbuilding in
the form of a sold bid," POSCO said.
In a regulatory filing made early on Tuesday, GS Holdings, the holding company of
GS, said it decided to pull out of the consortium with POSCO because of a
"difference" over conditions for the proposed acquisition.
Local newspapers reported, citing unidentified industry sources, that POSCO and
GS had disagreements over the value of the stake each side would hold in Daewoo
Shipbuilding.
With GS dropping its joint bid, POSCO, Hyundai Heavy Industries Co., the world's
largest shipbuilder, and Hanwha Group, an insurance and chemicals conglomerate,
are now competing for control of Daewoo Shipbuilding.
Some analysts say the Daewoo Shipbuilding stake may fetch as low as US$4 billion,
far below an earlier estimate of $7 billion made when potential bidders were
invited to submit their preliminary bids in late August.
The transaction, if successful, would be one of the biggest asset sales by South
Korea's state-run financial institutions, which took over a number of indebted
private companies in the wake of the 1997-98 Asian financial crisis.
State-run Korea Development Bank, which is the largest shareholder of Daewoo
Shipbuilding and is also managing its sale, plans to pick a preferred bidder as
early as Oct. 25.
For weeks officials at KDB have indicated that bids for Daewoo Shipbuilding would
fail if offering prices were too low.
Foreign investors were banned on security grounds from bidding for Daewoo
Shipbuilding, which manufactures submarines for the South Korean Navy.
(END)
POSCO and GS, an energy and retail conglomerate, jointly submitted a final bid to
buy a 50.4 percent stake in the world's No. 3 shipyard on Monday, but GS dropped
out hours after the final offer was made.
"Although GS put an end to the consortium and withdrew from the bid, POSCO
decided to continue to push for a proposed acquisition of Daewoo Shipbuilding in
the form of a sold bid," POSCO said.
In a regulatory filing made early on Tuesday, GS Holdings, the holding company of
GS, said it decided to pull out of the consortium with POSCO because of a
"difference" over conditions for the proposed acquisition.
Local newspapers reported, citing unidentified industry sources, that POSCO and
GS had disagreements over the value of the stake each side would hold in Daewoo
Shipbuilding.
With GS dropping its joint bid, POSCO, Hyundai Heavy Industries Co., the world's
largest shipbuilder, and Hanwha Group, an insurance and chemicals conglomerate,
are now competing for control of Daewoo Shipbuilding.
Some analysts say the Daewoo Shipbuilding stake may fetch as low as US$4 billion,
far below an earlier estimate of $7 billion made when potential bidders were
invited to submit their preliminary bids in late August.
The transaction, if successful, would be one of the biggest asset sales by South
Korea's state-run financial institutions, which took over a number of indebted
private companies in the wake of the 1997-98 Asian financial crisis.
State-run Korea Development Bank, which is the largest shareholder of Daewoo
Shipbuilding and is also managing its sale, plans to pick a preferred bidder as
early as Oct. 25.
For weeks officials at KDB have indicated that bids for Daewoo Shipbuilding would
fail if offering prices were too low.
Foreign investors were banned on security grounds from bidding for Daewoo
Shipbuilding, which manufactures submarines for the South Korean Navy.
(END)
