Incoming Hanaro head denies rumors of sale

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Incoming Hanaro head denies rumors of sale

U.S. investment fund Newbridge Capital Ltd. does not plan to sell its stake in Hanaro Telecom Inc., Korea’s second-largest communications service provider, Hanaro Telecom’s incoming chief executive officer said yesterday. In September 2003, a consortium comprising Newbridge Capital and American International Group Inc. (AIG) invested $1.1 billion in Hanaro Telecom, becoming its largest shareholder. Newbridge Capital holds 10.7 percent and AIG 13.7 percent. “Newbridge Capital is basically a long-term strategic investor,” Hanaro’s Park Byung-mu told reporters. “At the moment, it has no plans to sell its stake in Hanaro Telecom.” Mr. Park, representing the consortium, was named Hanaro Telecom’s new president early this month, leading some to worry that the foreign investors may sell their shares. His appointment is subject to approval by shareholders in March. “Such moves as a recent stock buyback, layoffs and other restructuring efforts show the foreign fund’s intention to seek the company’s long-term development,” he said. Last Friday, Mr. Park purchased 130,000 shares of Hanaro Telecom. Some say Newbridge is trying to raise the company’s share price before dumping its stake.
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