S KOREA'S POSCO SAYS IT IS MULLING TAKEOVER OF DAEWOO INTL

POSCO (KSE:005490), South Korea's leading steelmaker, said Tuesday it is reviewing a takeover of Daewoo International Corp., a former Daewoo Group unit whose operations are focused mainly on energy development.

"We are reviewing the strategic investment value of Daewoo International, but nothing has yet been decided," POSCO said in a regulatory filing.

On Monday, POSCO CEO Chung Joon-yang expressed interest in the trading and energy development company.

Creditors of Daewoo International, led by state-run debt restructurer Korea Asset Management Corp. (KAMCO), are seeking to sell their 68 per cent stake, valued at around 2.2 trillion won (US$1.84 billion).

KAMCO-led creditors are planning to name a lead manager next month for the stake sale.

Daewoo International is conducting massive gas and oil field development projects. Of them, its gas project in Myanmar is estimated at up to 8 trillion won.

Hanwha Group, which owns Korea Life Insurance Co., the country's No. 2 life insurer, is also reportedly interested in taking over Daewoo International, which has a 24 per cent stake in Kyobo Life Insurance Co.

Hanwha would be seeking to boost its insurance business through the acquisition, which would give the group assets comparable to those of Samsung Life Insurance Co., the country's leading life insurer.