ING, Hyundai Heavy eye S.Korea brokerage-analyst
SEOUL, May 19 (Reuters) - A small South Korean brokerage firm with an estimated book value of $140 million has attracted four bidders, including ING Groep (ING.AS) and Hyundai Heavy Industries Co Ltd (009540.KS), an analyst said on Monday,
Unlisted CJ Investment & Securities has been put up for sale by the food- and media-focused CJ Group, as the parent company wants to shed non-core operations.
A CJ Group spokesman said it is expected to pick a final bidder for the securities house within this month, but declined to identify bidders.
Daewoo Securities analyst Sung Ki-jong said ING, Hyundai Heavy Industries, steel maker POSCO (005490.KS) and energy- and construction-focused GS Group were among the bidders for the brokerage, without giving sources.
He said by telephone that Hyundai Heavy had offered the highest price and was most likely to be picked as a buyer.
CJ Group is selling 74 percent of the securities unit. The stake is worth 145.8 billion won ($140.6 million) going by CJ Securities' end-2007 balance sheet.
Hyundai Heavy declined to comment, while an ING (ING.N) spokeswoman in Seoul said she was unaware of its possible participation in the auction.
POSCO spokesman Choi Doo-jin flatly denied the company was interested in the brokerage.
GS Group, led by GS Holdings Corp (078930.KS), could not immediately be reached for comment.
If Hyundai Heavy won the auction, cash-rich affiliate Hyundai Mipo Dockyard Co Ltd (010620.KS) would be likely to finance the acquisition, Sung added.
South Korea's brokerage sector is set to benefit from deregulation next year and an increasing inflow of funds from investors switching from low-yield bank accounts.
Hyundai Motor Co (005380.KS) and Kookmin 060000.KS bought small domestic brokerage companies last year as new regulations will from 2009 make it easier for securities houses to package and sell derivatives and develop in-house funds.
(Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner and Keiron Henderson)
