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To: Cooters who wrote (87533)	11/16/2000 8:09:26 AM
From: Cooters	Respond to of 152472

LG Telecom Says BT Investment Talks Continuing --From AOl.-- Cooters Seoul, Nov. 16 (Bloomberg) -- LG Telecom Co. said it's still in talks to secure more cash from British Telecommunications Plc. even as Europe's second-largest phone company indicated it will scale back or liquidate some of its Asian investments. LG, the smallest of Korea's five mobile phone companies with less than half the subscribers of its nearest rival, said it will hold a board meeting around Nov. 20 and make a statement on the possible investment to the Korea Stock Exchange on Nov. 22. LG said it's considering a rights offer. Further support from BT, which bought 24 percent of LG Telecom in 1998, may be crucial for the LG Group's plans for its future in Asia's third-largest mobile phone market. LG has bid for one of three 1.3 trillion won ($1.1 billion) new cellular licenses the government will award this year. ``Korea is the most attractive market for BT in Asia and they came here for strategic reasons not for short-term profit,'' said Lee Jong Hwan, an LG spokesman. ``BT have given us no indication that they are considering pulling out.'' Still, the former U.K. monopoly said last week it planned to sell assets to slash its debt by 10 billion pounds ($14 billion) and is evaluating its investments in Asia for possible sales. BT's statement left its partners from India's Bharti Cellular Ltd. to Hong Kong's SmarTone Telecommunications Holdings Ltd. and Malaysia's Maxis Communications Bhd. waiting to hear whether it will continue to extend support for them. Some believe the U.K company's Hong Kong and Korean investments are most likely to be liquidated. ``It's a critical juncture for the LG Group overall,'' said Hur Young Ho, an analyst at HSBC Securities in Seoul. ``If BT want to have some adjustment in Asia then our view is that it's going to be SmarTone in Hong Kong and LG Telecom.'' Possible Loss LG's Lee said a liquidation of BT's investment in the division of Korea's third-largest business group at current prices would result in a loss for the U.K. company. When it bought the LG stake in 1998, BT paid 18,000 won per share. Since their listing on Korea's Kosdaq index of over-the- counter-shares, the shares have 43 percent since early November to 7,160 won. Investors have sold shares expressing concern that LG Group doesn't have money to pay for the new phone license and the equipment needed to have a new service operational as early as the end of next year. LG Electronics Inc., which is leading LG's bid with a 40 percent stake in the license consortium, said its debt-to-equity ratio rose to 186 percent from 103 percent at the end of 1999 after taking on LG Information Communication Co.'s debt. Taking on that debt and the repurchase of shares from the shareholders of both companies who opposed the merger of the two also pushed up the debt-to-equity ratio. The company said net profit slumped to 27.1 billion won in the three months ended September, down from 246 billion won in the second quarter. Nov/16/2000 2:29 ET