KDB in talks with foreign, local firms to buy Daewoo Engineering

SEOUL, Jan. 5 (Yonhap) -- The state-run Korea Development Bank (KBD) is in talks
with local and overseas companies to jointly buy Daewoo Engineering &
Construction Co., a construction unit of Kumho Asiana Group, which is undergoing
creditor-led debt rescheduling, the bank head said Tuesday.

"Several companies have expressed their interest," Min Euoo-sung, the governor of
KDB told reporters. "They include both domestic and overseas firms".
The bank is open to the possibility of taking over a higher share than the
previously determined 50 percent stake plus one stock, Min said.
On Dec. 30, KDB said it will acquire the controlling stake for 18,000 won
(US$15.8) per share from Kumho group after the industrial conglomerate's efforts
to sell the builder fell through.
Kumho group selected two foreign funds -- Jabez Partners and TR America
Consortium -- as preferred bidders in late November, but the deal stalled owing
to the bidders' funding difficulties.
Market sources say KDB is seeking for the steelmaker POSCO to join the
acquisition, given the steel maker's abundant capital and synergy with POSCO's
construction business.
pbr@yna.co.kr
(END)

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