Asiana, Hanjin Submit Final Bids for Korea Express

Kumho-Asiana Group and Hanjin Group, South Korea's seventh- and eighth-largest conglomerates, submitted final bids to buy a controlling stake in Korea Express Co., the nation's biggest logistics company, group officials said Wednesday.

A total of 10 potential buyers, including Hanjin and Kumho-Asiana, have been conducting preliminary due diligence after submitting letters of intent to purchase 24 million new shares of Korea Express, which have a value of at least 2.4 trillion won ($2.7 billion).

The potential buyers are required to submit final bids by Wednesday and a court, which has controlled Korea Express since the company was put under receivership in June 2001, will select a preferred bidder by as late as Friday, an official of Korea Express said previously.

People close to the sale say it may become a bidding war between Kumho-Asiana and Hanjin, which own the nation's top two airlines _ Asiana Airlines Inc. and Korean Air Co.

For the sale, Korea Express will sell the 24 million new shares, which are equivalent to 60 percent of its enlarged capital.

Kumho-Asiana is South Korea's seventh-largest conglomerate with assets of 22.8 trillion won, according to the Fair Trade Commission, the country's antitrust regulator. Hanjin was eighth with assets of 22.2 trillion won.

A consortium led by Merrill Lynch & Co. is managing the sale.