Daewoo decision likely later this month

A preferred bidder for Daewoo Shipbuilding & Marine Engineering Co. is likely to be announced later this month, industry sources said. State-run Korea Development Bank (KDB) and a state-run asset manager are seeking to sell their 50.4% stake in the world’s third-largest shipyard bailed out in 2000 after its parent Daewoo Group collapsed under a mountain of debt. POSCO, Hyundai Heavy Industries Co., GS Group and Hanwha Group last month submitted preliminary bids for Daewoo Shipbuilding.

“The potential buyers are required to submit their final bids for Daewoo Shipbuilding by Monday, and KDB will announce a preferred bidder later this month after reviewing their detailed bids,” a source said. Speculation has it that KDB may cancel or delay the sale should bidders submit prices below expectations amid a flagging local stock market.

KDB wants at least 5 trillion won ($3.81 billion) for the sale, but market capitalization of Daewoo Shipbuilding reached 4.48 trillion won as of Tuesday, a sharp drop of nearly 30% from its peak in October.