POSCO, CJ Group bid for Korea Express

A consortium led by top steelmaker POSCO and CJ Group offered final bids for a 37.6 percent stake in Korea Express Co., South Korea's largest logistics company, sources said Monday.

Creditors of Korea Express, led by Korea Development Bank (KDB), closed the bidding for the stake at 5 p.m., which could be the biggest takeover deal this year with value of more than 1.5 trillion won ($1.38 billion).

Three large companies -- POSCO, retail giant Lotte Group and leading food conglomerate CJ Group -- submitted letters of intent to buy the company in March, but Lotte Group pulled out of the final bidding, according to the sources.

Steel giant POSCO has been seeking to purchase Korea Express, as the takeover would help the steelmaker cut down distribution costs.

There has been speculation that food giant CJ Group may walk away from the final bidding as its managers have expressed anger over Samsung SDS Co.'s sudden emergence in joining the consortium of POSCO in buying Korea Express.

Samsung SDS Co., an information technology service unit of Samsung Group, said Thursday that it will team up with leading steelmaker POSCO to buy the logistics firm. Samsung SDS plans to buy a 5 percent stake in Korea Express.

CJ Group said it is determined to file a lawsuit against Samsung Securities Co., the group's takeover manager, as the securities firm dropped out of its deal with CJ Group, saying that it and Samsung SDS are affiliates of Samsung Group.

"CJ Group joined the final bidding for Korea Express. We will take legal actions against Samsung Securities for inflicting losses to the group," said Jung Kil-geun, a spokesman at CJ Group.

Creditors are seeking to pick a preferred bidder no later than the end of June with an aim to complete the sale by early September.

The sale of Korea Express has been in a deadlock amid division of opinions over whether to sell the logistics firm's wholly owned bus terminal operator unit separately.

Lotte Group has opposed the creditors' decision to sell Kumho Terminal separately, raising speculation that the group might not bid for Korea Express.

Korea Express acquired a 100 percent stake in Kumho Terminal in September 2009 for 219 billion won, owned by Kumho Industrial Co., a construction unit of Kumho Asiana Group. Kumho Terminal currently operates a total of 18 express bus terminals across the country.

KDB, the main creditor of cash-strapped Kumho Asiana Group, is seeking to sell the stake in Korea Express that the group's two subsidiaries, Asiana Airlines Inc. and Daewoo Engineering & Construction Co., hold in a bid to wrap up the restructuring of the group.(Yonhap)