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POSCO- GS Group to pair up for DSME bid

POSCO- GS Group to pair up for DSME bid

Seoul: South Korean competitors POSCO and GS Group have revealed plans to forming a consortium to bid for the 50.4% stake in Daewoo Shipbuilding & Marine Engineering Daewoo.

"Forming a consortium will help secure medium- and long-term foreign funds," POSCO, the world's fourth-largest steelmaker,  said in a statement, adding it and energy-to-construction group GS are in talks with a European bank and Middle East investors, respectively, to raise funds. Combining both steel making and energy businesses with shipbuilding would also increase benefits of the deal, Reuters reports POSCO as having said.

DSME is expected to fetch shareholders including Korea Development Bank between $4-5bn in its sale. Other bidders for the world's third largest shipbuilder include Hanwha Group and surprise bidder Hyundai Heavy Industries. Rival shipyard STX is also reported to be on the lookout to join a consortium to bid for DSME.  [09/10/08]