LG, foreign players to vie for HiTek
By Kim Yoo-chulLG Group, GlobalFoundries (GF) of the United States, TowerJazz Semiconductor of Israel and HuaHong Grace Semiconductor (HGS) of China are competing to buy Dongbu HiTek, the semiconductor unit of Dongbu Group, according to sources familiar with the issue Sunday.The sources said that the Korea Development Bank (KDB), the main creditor bank of Dongbu HiTek and a lead manager for the deal, recently held a “kick-off meeting” with Nomura Securities, a co-lead manager, and decided to invite “limited potential buyers” to participate.“GF, LG and TowerJazz could be categorized as the leading contenders for HiTeK, while HGS is regarded as the runner-up. SK hynix is also on the candidate list,” said an KDB official by telephone.“Although chances are low, Semiconductor Manufacturing International Corp. (SMIC) of China is also in internal talks on whether to join the bidding,” he added.The KDB official said TowerJazz has also approached over the acquisition, although officials at Dongbu declined to confirm this. In a move to ease its l