POSCO to Buy Japanese Steel Stock

The Pohang Steel Co.(POSCO), Korea's top steel producer, decided on May 3 to gradually purchase shares in New Japan Steel until 2002 in an arrangement whereby both steel makers can defend management rights in the event of a hostile takeover.
The arrangement calls for both companies to gradually exchange eachother's securities. In case an emergency arises in one company, the other will cooperate, including delivering shares to the other if needed.
POSCO will buy 60 million dollars of New Japan Steel's stocks in the near future.
Prior to that, New Japan Steel purchased 0.1 percent worth of POSCO securities worth 5.9 million dollars.
A source from POSCO stated on May 3, 'Other than the Japanese company, Hyundai and Samsung are our amicable supporters in the stock market.'
Hyundai is known to hold more than 10 percent of POSCO's stocks while Samsung has at least 3.05 percent.
The Korea Industrial Bank will unload its 21 percent stake in POSCO sometime this year by the government's order.
Hwashik Bong : trojans@joongang.co.kr