POSCO may raise steel prices, interested in Daewoo

SEOUL, April 3 (Reuters) - South Korea's POSCO (005490.KS: Quote, Profile, Research, Stock Buzz) said on Thursday it was considering raising steel prices and may bid for Daewoo Shipbuilding and Marine (042660.KS: Quote, Profile, Research, Stock Buzz), which analysts say could fetch nearly 5 trillion won ($5.1 billion).

"We are considering raising steel prices but details in terms of the timing and the level of the price hike haven't been decided," a POSCO spokesman said.

POSCO, the world's fourth-largest steel maker by output, has been widely tipped by analysts to bid for Daewoo Shipbuilding to lock in a big buyer of its products.

South Korean steelmakers, including POSCO, have said that they were interested in buying the shipbuilder but the high premium for the company could be a problem. (Reporting by Miyoung Kim; Editing by Keiron Henderson)