CJ Group picked as prime bidder for Korea Express

SEOUL, June 28 (Yonhap) -- Creditors of Korea Express Co. on Tuesday picked CJ Group as a preferred bidder for South Korea's largest logistics company, which would be the biggest takeover deal this year, sources said.
Creditors of Korea Express, led by Korea Development Bank (KDB), closed the bidding on Monday for a combined 37.6 percent stake in the company in a deal which could fetch more than 1.5 trillion won (US$1.4 billion).
A consortium led by top steelmaker POSCO and leading food conglomerate CJ Group offered the final bid for Korea Express with retail giant Lotte Group pulling out of the bidding.
Creditors said they aim to complete the sale no later than early September.
The race to buy Korea Express has been complicated as Samsung SDS Co., an information technology service unit of Samsung Group, said Thursday that it will team up with leading steelmaker POSCO to buy the logistics firm. Samsung SDS plans to buy a 4.99 percent stake in Korea Express.
CJ Group has been unnerved by Samsung SDS' move to join the race as Samsung Securities Co., the group's former takeover advisor, dropped out of its deal with CJ Group, saying that it and Samsung SDS are affiliates of Samsung Group.
CJ Group is determined to file a lawsuit against Samsung Securities Co., on suspicions that the brokerage house may leak information which it got from arranging the takeover to Samsung SDS and this might result in losses for CJ Group.
KDB, the main creditor of cash-strapped Kumho Asiana Group, is seeking to sell the stake in Korea Express that the group's two subsidiaries, Asiana Airlines Inc. and Daewoo Engineering & Construction Co., hold in a bid to wrap up the restructuring of the group.
sooyeon@yna.co.kr