POSCO beats Lotto to acquire Daewoo in a $3 billion deal
14 May 2010
South Korean steel major POSCO has clinched the deal to acquire Daewoo International in a $3 billion bid, beating rival Lotte Group, media reports said today.
Posco, Lotte and the Jihan Global consortium had, in March, submitted preliminary bids for a controlling stake in Daewoo International. Jihan, however, didn't submit a final bid.
POSCO and the Lotte Group have submitted final bids for acquiring up to 68 per cent in energy developer Daewoo.
Last week, S Korean newspap0er the JoongAng Ilbo reported that Posco had offered around 3.5 trillion won ($3 billion) for a majority stake, trumping retailer Lotto's 3.4 trillion won (See: POSCO trumps Lotto with $3 billion final offer for Daewoo International: report)
The state-run Korea Asset Management Corp (KAMCO), which holds the majority stake in the bankrupt Daewoo International, said it has chosen POSCO as the preferred negotiator in the two-way auction with the Lotte Group.
"We factored in the bid prices most where POSCO outrivaled Lotte. In non-financial segments, POSCO also was tantamount to Lotte. Hence, we came up with a decision in favor of POSCO,'' reports quoted a KAMCO official as saying.
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