Posco, Hanwha bidding for Daewoo: sources

Posco, Hanwha bidding for Daewoo: sources

Seoul: Posco and South Korea’s chemicals-to-brokerage group Hanwha are studying a potential bid for Daewoo International, sources close to the companies told Reuters on Wednesday.

“We are now doing feasibility studies unofficially on Daewoo International, although we had no official guidelines yet from our top management," said a senior official at Hanwha, asking not to be named because he was not authorised to speak to media.

Posco, the world’s No. 6 steelmaker, has also been conducting feasibility studies on a potential deal for Daewoo International, three industry sources with knowledge of the company said.

South Korean banks and state debt clearer Korea Asset Management Corp (Kamco) own a combined 68.8% stake in Daewoo International, a trading and energy development company.

Their stake is worth about 3 trillion won ($2.51 billion), including a management premium, based on the market price.