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Doosan denies talk of affiliate's rights issue

Tue Jul 1, 2008 10:53pm EDT

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SEOUL, July 2 (Reuters) - Doosan Corp 001050.KS on Wednesday denied market talk that affiliate Doosan Heavy Industries (034020.KS), was planning a rights issue, which dealers said could be used to fund a major acquisitition.

Rumours that Doosan Heavy was planning to issue new shares to fund a possible acquisition of Daewoo Shipbuilding & Marine Engineering (042660.KS) sent shares in Doosan Group units sharply lower on concern about the financial burdens of an acquisition amid depressed share markets and an economic downturn.

Doosan Corp (000150.KS) fell 12.28 percent to 146,500 won and Doosan Heavy Industries (034020.KS) tumbled 6.94 percent to 87,300 won as of 0252 GMT.

"The (rights issue) rumours are simply untrue and groundless," a Doosan Corp official told Reuters.

(Reporting by Park Jung-youn; editing by Keiron Henderson)



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