SKorean steelmaker strengthens defences against takeover

0 Comments | AFP, February, 2007

SEOUL, Feb 23, 2007 (AFP) — South Korea's POSCO, the world's third largest steelmaker, said Friday its shareholders have approved a proposal to ease rules on new share sales in an attempt to forestall hostile takeover attempts.

At an annual meeting shareholders also approved a revision to corporate articles. Following the changes, POSCO will be able to sell new shares to strategic partners and double the ceiling on the sale of bonds convertible into stock to two trillion won (2.12 billion dollars), Yonhap news agency reported.

It quoted chairman and chief executive officer Lee Ku-Taek as telling the meeting that the company must increase its value to avoid becoming a target.

"In order to fend off any hostile takeover attempts, we will continue to raise the...