The POSCO flag flutters in front of the company's headquarters in Seoul, 12 April 2007. South Korean steel giant POSCO swapped stakes Monday with Hyundai Heavy industries, the world's largest shipyard, to strengthen its defences against any hostile takeover.
South Korean steel giant POSCO swapped stakes Monday with Hyundai Heavy industries, the world's largest shipyard, to strengthen its defences against any hostile takeover.
The world's third largest steelmaker has engaged in cross-shareholding deals with friendly firms since it emerged as a possible target for a takeover by Arcelor Mittal, the world's biggest steelmaker.
On Monday Hyundai Heavy's subsidiary Hyundai Mipo bought a 1.0 percent stake in POSCO worth 343 billion won (369 million dollars). In return, POSCO bought a 1.9 percent stake in Hyundai Heavy.
"The deal, which was completed today, will help POSCO step up its defences to thwart any hostile takeover attempt," a POSCO official told AFP on condition of anonymity.
POSCO, 59 percent owned by foreign investors, counts Japan's Nippon Steel, the world's second largest steelmaker, as its biggest shareholder and ally.
Arcelor Mittal and POSCO are jostling to meet rapidly growing Asian demand led by China and India. Mittal acquired rival Arcelor of Luxembourg last year to create the world's largest steel group.
South Korean steel giant POSCO swapped stakes Monday with Hyundai Heavy industries, the world's largest shipyard, to strengthen its defences against any hostile takeover.
The world's third largest steelmaker has engaged in cross-shareholding deals with friendly firms since it emerged as a possible target for a takeover by Arcelor Mittal, the world's biggest steelmaker.
On Monday Hyundai Heavy's subsidiary Hyundai Mipo bought a 1.0 percent stake in POSCO worth 343 billion won (369 million dollars). In return, POSCO bought a 1.9 percent stake in Hyundai Heavy.
"The deal, which was completed today, will help POSCO step up its defences to thwart any hostile takeover attempt," a POSCO official told AFP on condition of anonymity.
POSCO, 59 percent owned by foreign investors, counts Japan's Nippon Steel, the world's second largest steelmaker, as its biggest shareholder and ally.
Arcelor Mittal and POSCO are jostling to meet rapidly growing Asian demand led by China and India. Mittal acquired rival Arcelor of Luxembourg last year to create the world's largest steel group.