The Korean government will turn over Daewoo Heavy Industries and Machinery to Doosan Heavy Industries after it bid $1.6 billion for the company, the JoongAng Daily reported. Doosan will have a month to negotiate with the Korea Asset Management Corp., the state-run agency that is arranging the sale. If talks are not completed during that time, Korea Asset will begin discussions with Hyosung Corp., the second-highest bidder. The Korean government is selling the 31 percent of Daewoo shares owned by Korea Asset and the 20 percent owned by Korea Development Bank. Daewoo’s labor union and metalworkers are protesting the sale and say they will attempt to block Doosan from surveying the grounds. Doosan conducted a mass layoff in 2000 after buying Korea Heavy Industries and Construction. After its selection, Doosan announced it would maintain Daewoo Heavy as a separate company and retain all employees for three years.
Korean government to sell Daewoo Heavy to Doosan
Nov 8, 2004