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Daewoo Engineering investors reportedly interested in control of Asiana Airlines

25-Jan-2010 12:08 PM

Korea Development Bank, which agreed to acquire a controlling stake in Daewoo Engineering from Kumho Asiana in Dec-2009, stated it is discussing a proposal from some of Daewoo Engineering & Construction Co’s investors who have expressed interest in acquiring a controlling stake in Kumho Industrial Co (Maeil Business Newspaper/Bloomberg, 22-Jan-2010). The investors have reportedly proposed swapping KRW2.6 trillion (USD2.3 billion) of debt for equity in the company, and the issue of KRW2.2 trillion (USD2.0 billion) of new shares, and are reportedly also seeking to acquire management control in Asiana Airlines Inc, part-owned by Kumho Industrial.