Tuesday, December 11, 2007

[The Hankyoreh, December 6 2007] LG Telecom voices concern over SK Telecom's takeover of Hanarotelecom

The top executive of LG Telecom Ltd., South Korea's smallest mobile carrier, expressed concerns Thursday over a recently announced takeover deal by its bigger rival SK Telecom Co. of a local broadband Internet operator.
The LG executive urged the government to take measures to guarantee fair competition.

"We are very concerned about the deal," Jung Il-jae, LG Telecom CEO, told a press conference, referring to SK Telecom Co.'s move to purchase a controlling stake in Hanarotelecom Inc., the nation's second-largest Internet service provider. "The government should consider ways to reduce anti-competitive market conditions that could be triggered by the takeover deal."

The remarks come after SK Telecom announced on Monday that it has signed an official contract to buy a 38.89 percent stake in Hanarotelecom for 1.08 trillion won (US$1.17 billion). The takeover deal is subject to government endorsement and SK Telecom said it is preparing the necessary documents.

No comments: