South Korea's KT&G Shares Soar on Offer [ Yahoo / business ]

[Sherpa]

South Korea's KT&G Shares Soar on Offer

Thu Feb 23, 9:59 PM ET

Shares in KT&G Corp. soared Friday after investors led by U.S. billionaire Carl Icahn made an unsolicited offer to acquire South Korea's former government tobacco monopoly.

KT&G shares jumped 8.8 percent to 55,700 won ($58) by midmorning in Seoul after earlier rising nearly 13 percent.

Icahn and other investors in the company on Thursday offered 60,000 won ($62) a share for the company, which has businesses ranging from tobacco to products related to the ginseng root, popular in Asia for its perceived health benefits.

KT&G has 162 million shares, which means the company would be valued at about 9.72 trillion won ($10.1 billion) at current exchange rates at such a share price.

The investors have been calling for KT&G to float shares in its ginseng subsidiary and to sell landholdings to improve the company's share price. Those proposals have so far been rebuffed by the company's Chief Executive Officer Kwak Young-kyoon.

Icahn, known in the United States for his numerous attempts to shake up corporate boardrooms, has recently made headlines by leading investors seeking change at media giant Time Warner Inc.

According to KT&G, foreign investors owned 63 percent of the company as of the end of last year. The three-largest investors are Franklin Mutual Advisers LLC with a 7.15 percent stake, the investors led by Icahn, and Industrial Bank of Korea at 5.85 percent.

출처 : yahoo / news / business