Lotte sees POSCO likely winner of Daewoo

South Korean retailer Lotte Group, which is in the race to buy a domestic energy developer, sees steelmaker POSCO as the frontrunner in an auction estimated at $3 billion, a media report said on Wednesday. Lotte and POSCO are two final bidders for Daewoo International Corp, in which financial institutions are offering up to a 68 percent stake.
"POSCO has a strong chance," online news outlet eDaily quoted Lotte Group Vice Chairman Shin Dong-bin as saying in response to reporters' questions at a business gathering.
"We cannot help it. We will focus on cross-border M&A from now on."
Lotte Group was not immediately able to confirm the report.
POSCO, the world's No.4 steel producer, reportedly had offered nearly 3.5 trillion won ($3.1 billion) to gain control of Daewoo International, higher than a proposal by rival bidder Lotte.
Daewoo ships steel products and trades iron ore and base metals, as well as runs overseas energy development projects.
The preferred buyer is expected to be picked later this month.