Bidders confirmed for DSME stake

Seoul: Posco, Hanhwa Group, G S Group and Hyundai Heavy Industries have officially been confirmed as the only contenders in the bidding war for a 50.4% majority stake in Daewoo Shipbuilding and Engineering (pictured). The four companies submitted letters of intent to bid for the shares before the 3pm Korean standard time deadline today.

Subject to elimination through screening by the Korea Development Bank (which is managing the deal), the four parties would submit preliminary bids in September and final bids in October. Analysts estimate the acquisition to garner an estimated $8bn - double DSME's current value.

Surprise participant HHI, already the largest shipbuilder by world market share, stands to control 20% of the world shipbuilding market if successful with its bid - raising concerns about anti-trust issues.  [28/08/08]