Shares of Hanjin Shipping Co. jumped Monday on speculation that the nation's largest shipping line by sales may be mired in a management feud after its chairman died.
Cho Soo-ho, 53, chairman and chief executive officer of Hanjin Shipping died of cancer at a hospital in Seoul on Sunday. Cho, the third son of the late founder of the Hanjin Group, Cho Joong-hoon, owns a 6.87 percent stake in the company.
Hanjin Shipping stock rose 8 percent to close at 28,250 won (US$30.4) on Monday, compared with a 0.2 percent climb in broad market index. The stock gained as much as 10 percent in the morning session.
Currently, foreign investors hold about a 34 percent stake in Hanjin Shipping, the world's seventh-largest shipping company with an annual revenue of $5 billion.
Last month, Sami Ofer, the Israeli shipping tycoon, raised his stake in Hanjin Shipping to some 12 percent after purchasing 6.24 million shares from Geveran Trading.
However, analysts say chances are slim for Hanjin Shipping to become a hostile takeover target from foreign investors because Cho's eldest brother, Yang-ho, chairman of Korean Air, the flagship of the Hanjin Group, and his relatives hold a 28.9 percent stake in the shipping line.
To fend off a potential takeover, Hanjin Shipping's late chairman also issued bonds with warrants worth $50 million in 2001. The bonds allow the Cho family to buy 18 percent of new shares in the shipping company, analysts say.
Still, it isn't known whether the late chairman left a will regarding the company's management. Cho is survived by a 43-year-old wife and two daughters who have no shares in the company.
Hanjin Shipping said in a news statement that it will disclose Cho's will on Wednesday after his funeral
Cho's second-eldest brother, Nam-ho, is chairman of Hanjin Heavy Industries Co. and his younger bother, Jeong-ho, owns Meritz Securities Co., a non-life insurer.
"Hanjin Shipping stock could fluctuate for the time being due to the uncertainty over the company's ownership," said an analyst at a local brokerage, who declined to be named.
Some analysts say speculation about a possible family feud over the management of Hanjin Shipping "isn't persuasive."
In a research note to clients on Monday, Korea Investment & Securities analyst Yoon Hee-do said it's not convincing that Cho's brothers may try to acquire Hanjin Shipping because their shareholdings in the shipping line are minimal.
Cho Soo-ho, 53, chairman and chief executive officer of Hanjin Shipping died of cancer at a hospital in Seoul on Sunday. Cho, the third son of the late founder of the Hanjin Group, Cho Joong-hoon, owns a 6.87 percent stake in the company.
Hanjin Shipping stock rose 8 percent to close at 28,250 won (US$30.4) on Monday, compared with a 0.2 percent climb in broad market index. The stock gained as much as 10 percent in the morning session.
Currently, foreign investors hold about a 34 percent stake in Hanjin Shipping, the world's seventh-largest shipping company with an annual revenue of $5 billion.
Last month, Sami Ofer, the Israeli shipping tycoon, raised his stake in Hanjin Shipping to some 12 percent after purchasing 6.24 million shares from Geveran Trading.
However, analysts say chances are slim for Hanjin Shipping to become a hostile takeover target from foreign investors because Cho's eldest brother, Yang-ho, chairman of Korean Air, the flagship of the Hanjin Group, and his relatives hold a 28.9 percent stake in the shipping line.
To fend off a potential takeover, Hanjin Shipping's late chairman also issued bonds with warrants worth $50 million in 2001. The bonds allow the Cho family to buy 18 percent of new shares in the shipping company, analysts say.
Still, it isn't known whether the late chairman left a will regarding the company's management. Cho is survived by a 43-year-old wife and two daughters who have no shares in the company.
Hanjin Shipping said in a news statement that it will disclose Cho's will on Wednesday after his funeral
Cho's second-eldest brother, Nam-ho, is chairman of Hanjin Heavy Industries Co. and his younger bother, Jeong-ho, owns Meritz Securities Co., a non-life insurer.
"Hanjin Shipping stock could fluctuate for the time being due to the uncertainty over the company's ownership," said an analyst at a local brokerage, who declined to be named.
Some analysts say speculation about a possible family feud over the management of Hanjin Shipping "isn't persuasive."
In a research note to clients on Monday, Korea Investment & Securities analyst Yoon Hee-do said it's not convincing that Cho's brothers may try to acquire Hanjin Shipping because their shareholdings in the shipping line are minimal.