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HONG
KONG—Posco, South Korea’s largest steelmaker, said it is
in talks with overseas banks to help fund a bid for
Daewoo Shipbuilding & Marine Engineering Co. valued at
about $4.9 billion.
The
steelmaker has been in contact with potential investors,
including those in Europe, to raise funds for the
50.4-percent stake in the world’s third-largest
shipbuilder, said Ko Min Jin, a Seoul-based Posco
spokesman, in response to a MoneyToday report on
Thursday.
“Details, such as the size of investment, haven’t been
decided yet,” Ko said.
A stake
in Daewoo Shipbuilding would allow the winning company
to enter the offshore oil-exploration business as
depleting reserves increase the need for deep-sea
drilling and production. Posco, already in talks with
the National Pension Service, is seeking investors to
help with funding as credit dries up in the worst
financial crisis since the Great Depression.
Posco is
in talks with European bank to join in its bid for
Daewoo Shipbuilding, MoneyToday reported, without saying
where it got the information. The unidentified European
bank is expected to invest 1-trillion won, or $704
million, the online news service said.
State-owned Korea Development Bank and Korea Asset
Management Corp. are selling their Daewoo Shipbuilding
shares, worth 1.98-trillion won based on Wednesday’s
closing price of 20,500 won. (Bloomberg) |
