POSCO, 2 big firms show interest in Korea Express

SEOUL, March 4 (Yonhap) -- South Korean steel giant POSCO and two major companies have expressed their intentions to buy a major stake in Korea Express Co., the country's biggest logistics company, sources said Friday.
Retail giant Lotte Group and food-oriented CJ Group also submitted letters of intent to buy the 37.6 percent stake in Korea Express to Nomura Securities Co., a co-manager for the sale, according to the sources.
Nomura Securities didn't disclose how many companies showed interest in buying Korea Express. Friday was the deadline for presenting the documents.
"We handed in a letter of intent to buy Korea Express today," POSCO said in a regulatory filing.
The transaction, if completed, is expected to become the biggest takeover deal in the first half of 2011, analysts predict. The stake, which the state-run Korea Development Bank (KDB) put up for sale, is expected to fetch more than 1.5 trillion won (US$1.3 billion).
Shares of Korea Express finished at 11,500 won on the Seoul main bourse, up 5.74 percent from Thursday's close.
The KDB, the main creditor of cash-strapped Kumho Asiana Group, is seeking to sell the stake held by the group's two main subsidiaries. Daewoo Engineering & Construction Co. owns 18.62 of Korea Express, and Asiana Airlines Inc. holds an 18.98 percent interest.
Nomura Securities and the KDB, which also manages the Korea Express sale, will launch a preliminary bidding process in order to pick a preferred bidder by May 13. The KDB seeks to sign a formal contract on May 27 to finalize the deal by the end of June.
pbr@yna.co.kr