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HHI joins DSME bidding war

HHI joins DSME bidding war

Seoul: The world's leading shipbuilder Hyundai Heavy Industries has expressed an interest in purchasing a 50.4 % majority stake in rival Daewoo Shipbuilding. The surprise move will see HHI, which claims to control 15% of the total shipbuilding market, bid against three separate consortiums consisting of Hanwha Group & Hanwha Corporation, steelproducer POSCO and the GS Group.

"We are interested in Daewoo Shipbuilding and will submit a letter of intent tomorrow," a Hyundai spokeswoman told Reuters by telephone. It is not known whether Hyundai would form a consortium to fund its possible bid, while the company has yet to decide whether submitting its letter of intent would result in its participation in the final auction for Daewoo, she added.
Tomorrow (Wednesday) is the deadline for interested parties to submit a letter of intent.

The sale, by current shareholders Korea Development Bank (KDB) and a government agency is expected to see bids up to an estimated $8bn.  [26/08/08]