Kumho Asiana set to pick priority bidder for Daewoo Engineering sale

Kumho Asiana Group, a South Korean conglomerate, said Saturday that it will choose a preferred bidder next week for a controlling stake in Daewoo Engineering & Construction Co. in an effort to sell South Korea's fourth largest builder within this year.

"We plan to announce a preferential negotiator among the three bidders on Nov. 23," the group said.

The three are the U.S.-based AC Development Inc., Jabez Partners Co. and a Russian-led consortium.

The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund run by Abu Dhabi and the United Arab Emirates, teamed up with Jabez Partners, according to industry sources.

Jabez Partners is said to be a favorite in the bidding race, while all the three candidates reportedly offered to buy shares for 200,000 won (US$17).

The actual bidding price is expected to be decided with an adjustment of 5-10 percent from the initial bidding price.

"We agreed with two of the three bidders to set the final bidding price within 5 percent of the current bidding price if any of them is selected for priority negotiation," the group said.

The other bidder also agreed to negotiate the bidding price within a certain range, it added.

The bidders completed five weeks of due diligence on Daewoo last week.

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