U.S. investors led by billionaire financier Carl Icahn sold a 4.75 percent stake in South Korea's dominant ginseng and tobacco company KT&G Corp., a financial source said Tuesday.
"We've been asked to sell around 7 million shares owned by the U.S. investors. Most of it were sold before the market opened," said an official at Citigroup Inc., the manager of the share disposal, requesting to remain anonymous.
Most of the shares were purchased by foreign institutions, the official said.
The 424.9 billion won (US$458 million) sell-off was valued at 60,700 won per share, down 3.8 percent from its closing price on Monday.
Three funds controlled by Icahn, including Icahn Partners Master Fund LP, now own less than 1 percent of the South Korean company, down from its previous 5.26 percent stake.
KT&G had been under pressure from an unsolicited hostile takeover bid by Icahn-led funds, which have offered to buy the firm for about $10 billion, making it the first hostile takeover bid for a major South Korean company.
Icahn's side had also demanded that the South Korean company separately list its lucrative ginseng unit and sell idle assets to boost shareholder returns.
Seoul, Dec. 5 (Yonhap News)
Icahn-led U.S. investors sell 4.75 pct stake in S. Korea's KT&G |
