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Korea¡¯s biggest tobacco company KT&G is apparently getting ready for a showdown with the U.S. billionaire investor Carl Icahn, with each side striving to secure allies ahead of a general shareholder meeting in mid-March.
Icahn late last year sent a representative to demand that KT&G sell off its ginseng subsidiary. The firm refused. Then in early February, Icahn, through the fund he manages, bought KT&G shares to bring his holdings in the company to 6.59 percent and has recommended three candidates for the board.
KT&G on Friday announced it has hired Goldman Sachs as a financial consultant. At least, that is what the official statement says: the real purpose, pundits speculate, is to find friendly foreign investors to protect the company¡¯s management. A company staffer points out that Goldman Sachs provided consultancy for Time Warner when the global media giant had its own showdown with Icahn.
KT&G president Kwak Young-kyoon plans an overseas investor blitz next week. ¡°I will meet as many investors as I can to appeal to them for support so that we won¡¯t lose to Icahn at the general meeting,¡± he said.
Warren Lichtenstein, Icahn¡¯s partner and head of investment group Steel Partners, warns if KT&G refuses their demand, they will have to do everything in their power to get their candidates on the board.
(englishnews@chosun.com )
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