Kumho Asiana faces difficulty delaying Daewoo put-back option

(ATTN: RECASTS the 2nd para; ADDS Daewoo's share price in para 4)
SEOUL, Dec. 10 (Yonhap) -- Efforts by South Korea's troubled Kumho Asiana Group
to delay a put-back option for Daewoo Engineering & Construction Co. by one month
have met with mixed reactions from investors, financial sources said Thursday.
Kumho Asiana promised a group of financial investors when it bought Daewoo
Engineering & Construction in 2006 that it would buy back a 39 percent stake in
the builder if the company's stock price fell below 31,500 won (US$27) by
December 15, 2009.
The group bought a 72.1 percent stake in the builder for 6.42 trillion won, 3.5
trillion won of which was funded by financial investors including banks and
private equity funds.
Shares of Daewoo Engineering fell 0.81 percent to 12,200 won as of 10:59 a.m. on
the Seoul bourse.
Banks have taken a positive stance on Kumho Asiana's call to delay the option in
a bid to help facilitate a deal to sell the builder, the sources said.
But some investors, including private equity funds, are reluctant to accept the
group's proposal, claiming they already floated the option through asset-backed
securitization, they said.
Early this month, Kumho Asiana called on financial investors to delay exercising
their rights to sell stakes until January 15, saying that if they exercise their
options now it could have a negative impact on the sale of Daewoo Engineering &
Construction that is currently underway, sources said.
Under the deal with the group, investors can exercise their option any time
between December 15 and January 15.
ksnam@yna.co.kr
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