Struggle for Dacom Takeover Heats Up

The recent competition for majority control of Dacom is getting hotter.
Big hands such as Samsung, Tongyang, and LG are trying all possible ways to acquire Dacom, including forming consortiums.
LG, so far, is the frontrunner in the race. When it concluded a restructuring merger of its semiconductor operations with Hyundai, it received Hyundai's 5.25 percent stake of Dacom. LG hopes to wrestle management control of the telecommunications company.
A source from LG protested the government's current policy by saying, 'It is not fair to bind LG to within a five percent limit on Dacom's shares. The same kind of limitation on foreign investment has now been lifted.'
LG is lobbying the government to change the existing regulation that bars telecommunication companies from buying more than five percent of other telecommunication companies. Although LG already owns LG Telecom, it desparately wants to acquire control of Dacom declaring that information and communications are the only field left for LG Group since it gave up its semiconductor industry under government pressure.
LG Group's total stake in Dacom, through direct and indirect holdings, has now reached 33.85 percent, the most among any challengers.
Rivals, Tongyang and Samsung, have 26 percent and 19 percent, respectively.
The government will soon hold an open hearing, in which all the leading players can participate, to discuss Dacom's fate.
Hwashik Bong : trojans@joongang.co.kr