LG Dacom not interested in Hanaro Telecom

LG Dacom Corp, South Korea’s third largest fixed line operator, has said it is not interested in acquiring Hanaro Telecom as it sees no significant benefit from such a move. There had been media speculation that LG Dacom was considering purchasing a majority stake in Hanaro from AIG-Newbridge. ‘We don’t see much in the way of post-acquisition benefits from Hanaro Telecom. Resources at LG Dacom and LG Powercomm are sufficient enough for our telecom business,’ LG Dacom CEO Park Jong-Eung told reporters when asked about the firm’s intentions. The AIG consortium held 39.36% of Hanaro at the end of 2006, and is now understood to be planning to divest its holding. It paid USD500 million for the stake in 2003.