LG Group to foil US consortium’s bid for Hanaro

LG Group yesterday announced that its loss making broadband unit Hanaro Telecom will issue new shares to raise USD419 million, in a move aimed at thwarting a bid from a US consortium led by AIG. LG, which currently owns 13% of Hanaro, hopes the move will allow it to increase its holding; it plans to merge its three telecoms units Dacom, Hanaro and Powercomm to enable it to become a better competitor to its larger rival KT Corp.