International Open Bid For Hanbo Steel Co. To Begin In September or October

It has been revealed that an international open bid for the Hanbo Steel Co.(HSC) will be held in September, and three or four foreign companies are showing their interest to buy the HSC.

It has also been decided that at the open bid, they will select a company that shows a better term, regardless of the method for the bid, whether it would be sold as a whole or divided in parts.

A representative of Korea Asset Management Corporation (KAMC), the main debtor of the HSC, said yesterday, ``Currently America’s Hatch Consulting Co. is examining the HSC and the result will come out by the end of this month.`` ``As soon as the result comes out, we will send the result to companies with interest, and after that procedure, the international open bid will likely be held in September or October.``

The representative added, ``the on-going examination is to provide the exact information of the HSC for its possible bidders. It is also to accelerate the sale of the company.``

To accelerate the sale procedure, a chief superintendent company (Liman Brothers Co.) has been selected in early May to finish technology consulting and a thorough examination on the company.

A representative of the HSC said, ``The international open bid will be available after September, at the earliest, due to the examination and preparation procedures for the open bid.``

This representative also said, ``Currently, there are several domestic possible bidding companies including a consortium led by Kwon Ho-Sung, the president of Chungwho Industrial Co. And they are showing serious interest asking for information sources.``

President Kwon is a son of Kwon Chul-Hyun, the founder of the Union Steel Co.

The KAMC that had initially revealed their official plan of a dividing sale for the HSC said that ``no matter whether it would be sold as a whole or divided in parts, a flexible method will be applied for a company that present a better condition.``

Chung Jae-Ryong, the president of KAMC also made it clear by saying, ``We will sell the HSC to a company that recognizes the company’s value as high as possible.``

daviskim@donga.com