| S. Korea's steel, shipbuilding giants to buy each other's shares |
SEOUL, April 28 (Xinhua)-- POSCO, the world's fourth-largest steel maker, and Hyundai Heavy Industries Co., the world's largest shipyard, will buy stakes in each other to boost cooperation and strengthen defenses against hostile bids, the Korea Herald daily reported on Saturday.
According to the paper, POSCO will spend 346.6 billion won (373million U.S. dollars) to buy a 1.9 percent stake in Hyundai Heavy held by Hyundai Mipo Dockyard Co., while Hyundai Mipo will buy about 872,000 POSCO shares in return.
POSCO chief executive officer Lee Ku-taek is joining global rivals in boosting defenses to safeguard the company's independence as industry consolidation accelerates. The company said last month 41 percent of its shares are owned by so-called friendly investors, including Nippon Steel Corp.
Hyundai Heavy purchases 1.7 million tons of steel from POSCO and other Korean steel makers each year.
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