NEW YORK (
) -- South Korean steelmaker
has submitted a letter of intent to buy a controlling, roughly $2 billion stake in trade-services company
Posco believes the acquisition would have a valuable synergistic effect on the company. Daewoo's trade division has its hand in steel, base metals, chemicals, auto-parts and electronics. Through Daewoo, Posco would also be able to tap into energy developments abroad.
Shareholders, including state-owned Korea Asset Management, have offered to sell at least 50%-plus-one-share of their ownership in Daewoo International.
Posco American Depository Receipts (ADRs) have edged 0.2% higher to $117.40.
In other steel sector news, steel stocks are moving in mixed directions Wednesday morning.
ADRs are up 1.1% at $38.60, while
stock has edged 1.9% lower to $21.80 and
is up 1.1% to $16.30.
-- Reported by Andrea Tse in New York
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