BT to invest $500m in Korean company
Sunday 30 August 1998
BT is seeking approval from the South Korean Information and Communications Ministry, and a deal could be struck as early as October. There are also said to be a number of competing bids for the stake.
The move will mark a significant inroad into the South East Asian market for BT, which will join other British firms in snapping up investment opportunities in the crisis-ridden region as companies there hit rock bottom prices.
LG Telecom is a mobile phone company consortium, which is led by the industrial conglomerate LG Electronics and was set up in 1996.
"Clearly Asia is an important market to us. South Korea would be an eminently sensible place for us to invest in," said a spokesman for BT.
Thus far, BT's main investments in the region have been in Japan, where the British company has a number of a joint ventures and partnerships. The largest of these is BT-NIS, a joint venture with Japanese firm Marubeni to supply telecoms services tailor-made for multinationals.
In July, BT announced a pounds 6bn link-up with the US telephone giant AT&T under which the two companies will put all their international operations into a separate entity. The 50-50 joint-owned company will have operations in 237 countries with sales of up to pounds 7bn.
The move, currently awaiting approval from competition authorities, follows the collapse last year of BT's planned merger with MCI after upstart WorldCom snatched MCI from under BT's nose.
However, the failed merger has given BT some unexpected cash to play with. Worldcom is due to pay BT pounds 7.5bn for the stake it had in MCI prior to the US company's purchase by Worldcom.
Elsewhere, BT has been making big strides into Europe with investments of around pounds 1bn so far via a myriad of joint ventures with local phone companies. These include the purchase of a 26 per cent stake in the French mobile phone company Cegetel and a link-up with the German industrial group Viag.
In another sign that British companies are now moving back into Asia despite the continuing economic crisis, Blue Circle, the building materials group, announced last week it was buying two cement companies in Malaysia and Singapore for pounds 177m from Malayan United Industries, the company that recently bought clothes retailer Laura Ashley.
- 1 Man who was struck and killed by lightning in Brecon Beacons 'was carrying a selfie stick'
- 2 Lisa Randolph-Gant: Queen Elsa cake maker says she will carry on baking and will not let people 'break her spirit'
- 3 Tube strike: This pedestrian-friendly map tells you the time it takes to walk between stations
- 4 Pamplona Running of the Bulls 2015: Three men gored and 10 hospitalised on first day of festival
- 5 Sarah Jessica Parker explains why she is not a feminist: 'It's not just about women now'
Man who was struck and killed by lightning in Brecon Beacons 'was carrying a selfie stick'
Greece debt crisis: Greek future in the euro slips into deeper uncertainty as Alexis Tsipras arrives at emergency talks without a written plan
Man soars over Calgary after tying 110 balloons filled with helium to his lawn chair for PR stunt, gets arrested for mischief
Tube strike: This pedestrian-friendly map tells you the time it takes to walk between stations
Pamplona Running of the Bulls 2015: Three men gored and 10 hospitalised on first day of festival
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
Greece debt crisis: Angela Merkel and Francois Hollande issue Athens with 24-hour ultimatum to avoid crashing out of the euro
Greece crisis: Referendum exposes a gaping hole at the heart of the European Union – its lack of genuine legitimacy
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...