S Korea's National Pension Service scraps plan to bid for Daewoo
www.chinaview.cn 2008-10-02 11:17:34   Print

    SEOUL, Oct. 2 (Xinhua) -- South Korea's National Pension Service (NPS), the country's largest investor, said Thursday that it has decided to scrap its plan to bid for Daewoo Shipbuilding and Marine Engineering Co.

    "The situation is not good for the fund to make an investment into Daewoo Shipbuilding," said an official at the National Pension Service. "The fund will hold an investment-plan committee meeting next week to announce its decision not to bid for the shipyard."

    In August, the NPS announced that it may spend up to 1.5 trillion won (1.25 billion U.S. dollars) to make a joint bid for the world's third-largest shipyard.

    The pension fund has been talking with POSCO, GS Group and Hanwha Group to select its partner for the acquisition.

    State-run Korea Development Bank (KDB) and a government asset management agency plan to pick a preferred bidder this month to sell 50.4 percent stake of the shipyard, which is worth about 7 trillion won (5.8 U.S. billion dollars).

    The deal has drawn much attention from bidders as the winner could benefit from the shipyard's lucrative energy-related business and strong cash flows.

Editor: Jiang Yuxia
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