Hanwha, KDB to negotiate shipyard takeover terms this week

SEOUL, Jan. 12 (Yonhap) -- South Korea's Hanwha Group said Monday it will
negotiate the terms of its takeover of Daewoo Shipbuilding & Marine Engineering
Co. with the Korea Development Bank (KDB) this week.
KDB, the main creditor of Daewoo Shipbuilding, threatened Thursday to scrap a
deal to sell the shipyard to the preferred bidder, Hanwha, unless it can meet a
Jan. 30 deadline to finalize contract.
Hanwha reportedly offered 6.5 trillion won (US$4.95 billion) for Daewoo
Shipbuilding, but had to request postponement of payment amid a severe credit
crunch. But KDB rejected the request, instead offering to extend the deadline
until Jan. 30 and buy some of Hanwha's assets to help it raise money for the
takeover.
"After receiving notice from KDB, working-level officials from KDB and Hanwha
held talks, but there were no specific negotiations," said a Hanwha official. "I
believe both sides will negotiate details of the takeover terms this week."
Hanwha has been facing difficulty in raising money through the sale of stakes in
real estate and Korea Life Insurance, the nation's No. 2 life insurer, due to the
global financial turbulence.
ksnam@yna.co.kr
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