POSCO decides against buying Dongbu's steel, power units

SEOUL, June 24 Tue Jun 24, 2014 2:40am EDT

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SEOUL, June 24 (Reuters) - South Korean steelmaker POSCO said on Tuesday that it will not buy two of the units of the cash-strapped Dongbu Group conglomerate, citing financial burdens and price differences.

Korea Development Bank, Dongbu's main creditor, offered to sell Dongbu Incheon Steel and Dongbu Power Dangjin to POSCO in a package deal expected to be worth about 900 billion Korean won ($884.26 million), a source with direct knowledge of the matter told Reuters, declining to be identified as he was not authorized to speak to the media. (Reporting by Hyunjoo Jin; Editing by Matt Driskill)