ID :
24397
Tue, 10/14/2008 - 15:37
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http://m.oananews.org//node/24397
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POSCO to make solo bid for Daewoo Shipbuilding after GS drops out
SEOUL, Oct. 14 (Yonhap) -- POSCO Co., the world's fourth-largest steelmaker, said Tuesday it will make a solo bid for a controlling stake in Daewoo Shipbuilding & Marine Engineering Co., 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 solo bid," POSCO said.
State-run Korea Development Bank, which is managing the sale of Daewoo
Shipbuilding, is reviewing whether to accept POSCO's solo bid since it comes
after the deadline for final bids has passed. KDB plans to announce the result of
its review later in the day.
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.
KDB, the largest shareholder of Daewoo Shipbuilding, 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)
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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 solo bid," POSCO said.
State-run Korea Development Bank, which is managing the sale of Daewoo
Shipbuilding, is reviewing whether to accept POSCO's solo bid since it comes
after the deadline for final bids has passed. KDB plans to announce the result of
its review later in the day.
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.
KDB, the largest shareholder of Daewoo Shipbuilding, 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)
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