Date of Issue: 3th of July. 2008

CSSB-E-08-040

STX Group vying for Daewoo Shipbuilding.
STX Group, promoting the consortium for winning the bid for Daewoo Shipbuilding STX Group considers participating the consortium for taking over Daewoo Shipbuilding and Marine Engineering Co. STX Shipbuilding high-ranking official said We are considering taking part in the consortium for buying Daewoo Shipbuilding and Marine Engineering Co. with the strategic planning office as the center, and In regard to my knowledge, STX Shilbuilding is looking for the appropriate partners such as the financial investor. Daewoo Shipbuilding & Marine Engineering Co. is reported to take bid for Koreas major corporations such as POSCO, Dusan Group and Hanwha Group are reported to take bid for Daewoo Shipbuilding & Marine Engineering Co. and STX is the last candidate to jump into takeover bid.
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Date of Issue: 3 th of July. 2008
Hyundai Heavy Industries supporting Chinese Schools.
Hyundai Heavy Industries supports for rebuilding Chinese school struck by earthquakes. Hyundai Heavy Industries gave donations worth 7million yuan to Chinas earthquake stricken Sichuan province for rebuilding schools. Hyundai Heavy Industries is said to deliver donations to Chinese Youth Development Foundation in a contribution ceremony at Hangjin Hope School which held in Beijing, China as of July 2nd. The Hangjin Hope School Program is part of the move, being called Hoping Process that Chinese government is conducting to improve the education environment in the underdeveloped region and aims at expeditiously restoring the earthquake-damaged schools. Hyundai Heavy Industries is scheduled to reconstruct the earthquake-stricken schools in Sichuan Province and establish various kinds of physical training facilities in around 100 elementary schools through this program. Among those, 10 schools are going to be reborn with the name Hyundai Heavy Industries Hope Elementary School. Prior to this, Hyundai Heavy Industries provided about 150million won worth of 19 excavators which were produced in China for free of charge and the recovery operations are under way. Hyundai Heavy Industries made a first entry into China, with the foundation of excavator supplier in Jiangsu in 1995, and established a holding company in 2006 and currently operates seven local subsidiaries such as the construction equipment and heavy electronic machinery. The sales revenue is expected to reach more than $1 billion this year in China.
Ulsan City-Hyundai Heavy Industries holding World Shipbuilding Forum
Ulsan City convened meeting with Hyundai Heavy Industries officials to hold the World Shipbuilding Forum next year as of July 2nd. Ju Bong-hyun, mayor for administrative affairs and Min Gye-sik, vice president of Hyundai Heavy Industries concurred on the view that the World Shipbuilding Forum is needed to be held for upgrading Ulsan city status as the best shipbuilding city in the world and discussed about how to prepare for the forum, which is to be held next year June. The city stressed that it will be difficult to hold the World Shipbuilding Forum without cooperation from local shipbuilding corporations such as Hyundai Heavy industries, ranked No.1 in the worlds shipbuilding industry, and the ranking No.4 Hyundai Mipo Dockyard and further from Hyundai Heavy Industries and overseas ship owners and companies. Ulsan city invited Jo Sang-rae, vice president of Ulsan University and Lee Jin-tae, senior researcher of Korea Ocean Research & Development Institute for the same purpose at the Ulsan Lotte Hotel in April 2007. In this meeting, they had the opinion leaders meeting and created consensus and gather opinions on the directions of promotion. In addition, Ulsan city is accelerating efforts to make the forum atmosphere up in the air with Shipbuilding Marine Fostering Workers Seminar attended by related field experts at the second Ulsan Shipbuilding Marine day ceremony in last month. The city official said, We plan to hold the World Shipbuilding Forum to consolidate the status as the shipbuilding industrys mecca in the world, and We strive to make this forum into the shipbuilding industry Davos Forum, world economic conference, by sharing all sorts of information with political, financial, academic circles attending. Ulsans shipping industry started with the establishment of Hyundai Heavy Industries as of March,1972 and now Hyundai Heavy Industries and Hyundai Mipo Dockyard are leading the worlds shipbuilding industry, accounting for 12.4 percent of the total amount of ship construction in the world.

Daewoo Shipbuilding bid, POSCO, potential buyer top
Since the government stopped lending loans to large conglomerates for the purpose of M & A, the measure is expected to alter the M&A market landscape. In the rapidly approaching Daewoo Shipbuilding & Marine Engineering M&A, POSCO looks to be the top potential bidder above all others. The Ministry of Strategy and Finance said that the government is going to stop extending corporate lending for M&A as part of efforts to put strain on price increases. Given that the corporate lending for conglomerates M&A purpose is seen to take the leading role in increasing the cash liquidity in the market, which can drive up the price volatility further, we plans to cope with that matter beforehand. According to the informed source, currently POSCO, Dusan Group, Hanwha Group, GS Group and STX Group have made bids for Daewoo Shipbuilding &Marine Engineering. SK Group and Hyundai Heavy Industries Group are considered the tentative bidders. Since Daewoo Shipbuilding & Marine Engineering is the perfect takeover target on the scale or practicality front, every company vies for that bid. Daewoo Shipbuilding & Marine Engineering is expected to trigger major changes in the business ranking as the 22nd largest conglomerate. Especially with the shipping industry booming, Daewoo Shipbuilding & Marine Engineering generates annual sales of 800billion won and operating profits of 30billion won, which makes potential bidders to salivate over. Due to this, the major business leaders do not mind encouraging them to make all-out efforts to make bid for Daewoo Shipbuilding & Marine Engineering. Taking those elements into consideration, up until now, POSCO is the closest to being the top potential bidder. Even though, POSCO made plunge into the takeover bid for Daewoo Shipbuilding & Marine Engineering while striving for acquisition since last year, POSCO is evaluated as the most stable corporation on the capital mobilization and financial structure front because there hasnt been a single large-scale investment or corporate acquisition for a few years, despite the vague cause, citing securing the thick plates buyers. Especially the immediately available money is amounted to 1000billion won and the expected bidding price is more than 700billion won. One official in M&A industry said that If the government refuses to extend the corporate lending for M&A to conglomerates, the other bidders except POSCO are in a position to feel the pressure to raise the money.