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[igotthisguitar]

South Korea's KTG rejects unsolicited takeover bid
by U.S. investors

SEOUL, South Korea (AP) - South Korea's KTG Corp. on Monday rejected an unsolicited takeover bid by a group of investors led by U.S. billionaire Carl Icahn.



http://en.wikipedia.org/wiki/Carl_Icahn

The board of directors determined that it does not help maximize interests of the company and shareholders to accept the proposal, the tobacco giant said in a statement.

In a letter to chief executive Kwak Young-kyoon last week, Icahn and other investors offered to buy KTG at $62 US a share. The company makes tobacco products and items related to the ginseng root, popular in Asia for its perceived health benefits.

But Kwak said Monday the board had unanimously rejected the proposal because it is presumptive and lacks certainty, according to the company statement.

If the takeover attempt is successful, it would be the first unsolicited buyout of a major South Korean company by overseas investors.

Three funds controlled by Icahn - including Icahn Partners Master Fund LP and another fund, Steel Partners II LP - have become the second-largest holders of KTG, amassing about 6.7 per cent of the company's total shares, some 10.7 million, since last year.

The investors have been calling for KTG to float shares in its ginseng subsidiary and to sell landholdings to improve the company's share price.

A showdown on the bid is expected at the company's annual shareholders' meeting set for March 17. The investors have nominated three people to compete for two openings for outside directors on the company's board.

[Xerxes]

IGTG, I respect your intellect and enthusiasm, but would you NOT double post here and in Off-topic. This belongs more in off-topic. You do this often, and it is slightly annoying. I'm not being hostile, but just politely and strongly suggesting.