ANALYSIS - HANARO TELECOM-LG PROXY FIGHT HEATS UP.

AsiaPulse News, October, 2003

SEOUL, Oct 17 Asia Pulse - Everyone in the South Korean telecommunications industry is watching the increasingly bitter proxy fight for Hanaro Telecom.

Hanaro has vowed to get the go-ahead from minority shareholders for a US$1.1 billion financing package offered by a consortium of foreign investors headed by American International Group and Newbridge Capital. The deal requires Hanaro to sell its controlling 39.6-percent stake to the consortium.

To block the AIG-led deal, LG Group, a top shareholder of Hanaro, has enlisted the help of U.S. private equity fund The Carlyle Group, and launched on Wednesday a counter offer worth US$1.34 billion that would allow LG and Carlyle to jointly manage the broadband operator with a 25 per cent stake each.

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