Kumho Asiana set to pick priority bidder for Daewoo Engineering sale

SEOUL, Nov. 21 (Yonhap) -- Kumho Asiana Group, a South Korean conglomerate, said
Saturday that it will choose a preferred bidder next week for a controlling stake
in Daewoo Engineering & Construction Co. in an effort to sell South Korea's
fourth largest builder within this year.
"We plan to announce a preferential negotiator among the three bidders on Nov.
23," the group said.
The three are the U.S.-based AC Development Inc., Jabez Partners Co. and a
Russian-led consortium.
The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund run by Abu
Dhabi and the United Arab Emirates, teamed up with Jabez Partners, according to
industry sources.
Jabez Partners is said to be a favorite in the bidding race, while all the three
candidates reportedly offered to buy shares for 200,000 won (US$17).
The actual bidding price is expected to be decided with an adjustment of 5-10
percent from the initial bidding price.
"We agreed with two of the three bidders to set the final bidding price within 5
percent of the current bidding price if any of them is selected for priority
negotiation," the group said.
The other bidder also agreed to negotiate the bidding price within a certain
range, it added.
The bidders completed five weeks of due diligence on Daewoo last week.
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