Friday, January 20, 2006

KT&G Investment Thoughts

A big story was in the Korea Times recently on the fact that Carl Icahn is has bought a small stake in the company, and because of Icahn's history takeover rumors are swirling. There is this odd quote from Cho Sung-ok of Korea Investment and Securities:

“Most of all, KT&G has no attractive affiliates like other Korean conglomerates that foreign investors seek to acquire, ”

I would like to propose that is indeed the fact WHY a takeover of the company could be considered. Unlike most Korean companies management is not distracted by various business units, and further because of its lack of expansion into other areas it likely has a much better debt portfolio than other Korean companies. Oh and as the article says, the fact it is undervalued and has a 75% share of the local market makes it a pretty good target as well.

2 Comments:

At January 20, 2006 9:54 AM, Blogger R2K said...

Hey cool page! Topics I had never really seen or thought about before. I cant say I know all the ins and outs of the business info however...


R2K

 
At January 20, 2006 2:33 PM, Blogger Dram Man said...

Thanks for your kind words

 

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