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Korean pension fund may skip Daewoo bid

Korean pension fund may skip Daewoo bid

Seoul: South Korea's national pension fund may not proceed with a planned bid for Daewoo Shipbuilding and Marine Engineering as global turmoil dents potential returns from the deal, an official said on Tuesday. The National Pension Service (NPS), the world's fifth-largest pension fund, had planned to team up with one of the bidders for the world's No. 3 shipyard, which include POSCO, energy and construction-focused GS Group, and Hanwha Group. The deal, managed by state-owned Korea Development Bank, was initially estimated to fetch as much as 8 trillion won ($6.8 billion) when it was announced in August, with a preferred buyer set to be picked next month. "Considering all circumstances, the relative merit of investing in Daewoo Shipbuilding has dwindled sharply from two months ago," an NPS official said, asking not to be named because the fund has not yet finalised its position on the Daewoo auction.  [30/9/08]

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