POSCO and Lotte have offered bids of KRW 3.4tn (USD 2.95bn) and KRW 3.2tn (USD 2.77bn) respectively, to acquire Daewoo International, Money Today reported.
Meanwhile, a related report in the Seoul Economic Daily stated that Jihan Consortium, which had submitted a letter of intention, did not make a bid in the formal bidding process.
A separate report in the Korea Economic Daily stated that POSCO is seen as having a stronger negotiation position for the acquisition, as it has offered a better proposal than rival Lotte.
The report cited an unspecified M&A sector source as saying that a 68%-32% weighting is given to price and non-price factors in the selection of the preferred bidder.
As reported earlier, POSCO and Lotte submitted their bids by 7 May to acquire up to a 68.15% stake in Daewoo International, the listed South Korean wholesaler, from KAMCO.
(Sources: Money Today, Seoul Economic Daily, Korea Economic Daily)
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