Ssangyong Eng up after preferred buyer picked

SEOUL, July 11 (Reuters) - Shares in South Korea's Ssangyong Engineering & Construction (012650.KQ) rallied more than 7 percent on Friday, after a state agency picked a consortium led by Dongkuk Steel Mill (001230.KS) as a preferred buyer.

Korea Asset Management Corp (KAMCO), which is managing the deal, said in a statement that it would sign a preliminary agreement with the consortium in the middle of this month, allowing the group to study Ssangyong's books for a month.

It did not disclose the value of the deal.

Ssangyong shares trimmed gains, up 3.7 percent to 19,700 won by 0147 GMT after rising as high as 20,450 won.

(Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner)