POSCO swaps shares with Hyundai shipyard in takeover defence

0 Comments | AFP, April, 2007

SEOUL (AFP) — South Korean steel giant POSCO swapped stakes Monday with Hyundai Heavy industries, the world's largest shipyard, to strengthen its defences against any hostile takeover.

The world's third largest steelmaker has engaged in cross-shareholding deals with friendly firms since it emerged as a possible target for a takeover by Arcelor Mittal, the world's biggest steelmaker.

On Monday Hyundai Heavy's subsidiary Hyundai Mipo bought a 1.0 percent stake in POSCO worth 343 billion won (369 million dollars). In return, POSCO bought a 1.9 percent stake in Hyundai Heavy.

"The deal, which was completed today, will help POSCO step up its defences to thwart any hostile takeover attempt," a POSCO official told AFP on condition of anonymity.

POSCO, 59...