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POSCO Announces Solo Bid for Daewoo Shipbuilding

Posted October. 15, 2008 08:48,   


Korea’s biggest steel maker POSCO will make a solo bid for Daewoo Shipbuilding and Marine Engineering after the GS Group dropped out of a consortium with the company.

In an emergency board meeting yesterday, POSCO said, “GS dropped out of the joint bid, but we decided to make a solo bid for Daewoo Shipbuilding.”

POSCO Vice President Lee Dong-hee said, “Though the consortium fell apart due to differences over the takeover price, we’ll have no problem without GS.”

On if the steel maker is qualified to make a solo bid, something which rival bidder Hanwha Group has raised issue with, Lee said, “We’ll accept what the Korea Development Bank (Daewoo’s main creditor) decides. We will not file a lawsuit (if disqualified from the sale).”

A Hanwha source said, “If the bank allows POSCO to go ahead with a solo bid or if the bidding is nullified, it will trigger controversy over fairness and we will take legal steps.”

The bank is the largest shareholder and seller of the shipbuilder, and will decide whether POSCO is qualified today or tomorrow.

A bank source said, “Regardless of the decision on qualification, we will go ahead with the sale of the shipbuilder and announce the preferred bidder on Oct. 24 as scheduled.”

jinhup@donga.com jaeyuna@donga.com