* POSCO cites financial burden, price differences
* "No current plan" to sell Daewoo International stake -CEO
* POSCO plans to seek POSCO Energy listing this year
SEOUL, June 24 South Korean steelmaker POSCO
said on Tuesday that it will not buy two of the
units of cash-strapped conglomerate Dongbu Group, citing
financial burdens and differences over asset prices.
The move comes as the world's sixth-biggest steelmaker
grapples with debt and three consecutive years of declining
profit, hit by the industry's prolonged downturn.
Korea Development Bank (KDB), Dongbu Group'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.
The KDB said on Tuesday it would now begin a separate
bidding process for Dongbu Power Dangjin, which is viewed as a
more attractive asset than the Dongbu Incheon Steel. The bank
added it will discuss as to what to do with Dongbu Incheon
Steel, which has drawn no interest so far.
Meanwhile POSCO Chairman and chief executive Kwon Oh-joon
said on Tuesday POSCO has no "current plan" to sell any of its
controlling stake in its trade and resources arm, Daewoo
International, saying it is difficult to find a
buyer for the stake, which it bought for $3.3 billion in 2010.
He said the steelmaker plans to list shares in three of its
units on the domestic bourse - POSCO Specialty Steel, POSCO
Engineering & Construction and POSCO Energy. In a first step
POSCO is seeking to initially list POSCO Energy, a power plant
unit, this year, he said.
(Reporting by Hyunjoo Jin and Joyce Lee; Additional reporting
by Seyoung Lee; Editing by Kenneth Maxwell)