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November 30, 2007 |
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HANAROTELECOM: Corporate Watchdog Studies Deal With SK Telecom South Korea's corporate regulator is studying the possible effects of SK Telecom Co.'s plan to purchase hanarotelecom Inc., various reports say, citing Vice Chairman of the Fair Trade Commission Kim Byung-bae. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 16, 2007, hanarotelecom named SK Telecom as the preferred bidder for a controlling stake in the company. TCR-AP related that American International Group and Newbridge Capital, a consortium that bought hanaracom shares for US$500 million in 2003, is looking to sell its 40% stake. SK Telecom, Antara News relates, holds more than half of South Korea's 41 million mobile phone subscribers. Mr. Byung-bae told Antara that they are currently collecting data and studying how a possible deal (between the two companies) could affect the telecommunications market and monopolization. The possible deal, if signed, must be reviewed and approved by the commission in order to go into effect, The Korean Times points out. Analysts say the acquisition would pave the way for SK Telecom to expand its leading position beyond the mobile communications market, and help it prepare for the future convergence between fixed-line and mobile communications sectors, The Times adds. About hanarotelecom hanarotelecom Inc. -- http://www.hanaro.com/ -- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * As reported by the Troubled Company Reporter-Asia Pacific on Nov. 22, 2007, Fitch Ratings has placed the 'BB' Long-term foreign currency IDR of Hanaro Telecom on Rating Watch Positive. The rating action follows the announcement that SK Telecom has been selected as the preferred bidder to purchase a controlling stake in Hanaro Telecom, currently held by a consortium of American International Group Inc. and Newbridge Capital LLC. On Nov. 22, 2007, Standard & Poor's placed on CreditWatch with positive implications its 'BB' long-term corporate credit and senior unsecured debt ratings on Hanarotelecom Inc. These rating actions followed the recent announcement that SKT has been selected as the preferred bidder to take over a 38.9% stake in Hanaro from AIG-Newbridge-TVG consortium. Moody's Investor Service has given hanarotelecom's long-term corporate family and its senior unsecured debt 'Ba2' ratings. |
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Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
