POSCO "MULLS SNAPPING UP REMAINDER OF THAINOX"

       Pasco, Soth Korea's biggest steelmaker, is considering buying up to 85 per cent of Thailand's Thainox Stainless in a deal that could be worth as much as US$428 million (Bt14.3 billion), according to a Bloomberg report.
       prayuth Mahakijsiri, a major shreholder of Thainox, declined to comment when contacted by The Nation yesterday.
       However, Choi Doo Jin, a Posco spokesman, said details such as price and the size of the stake in the Thai company had not yet been decided.
       Posco, which already owns 15 per cent of Thainox, may invest up to as much as 500 billion won in the firm for the remainder of the shares, the Korea Economic Daily reported on its website.
       The South Korean company is expected to sign a preliminary agreement this month as it is negotiating the price with thai shareholders, the report said.
       Prayuth, who also has sizeable interests in the coffee industry and other businesses, branched into the stainless-steel industry more than a decade ago.
       In the second quarter, Thainox posted a consolidated net profit of Bt221.03 million, down from Bt311.75 million in the same period last year.
       It posted a net loss of Bt240.06 million for the first six months of the year against a net profit of Bt682.94 million for the same period last year.
       As of last April, Prayuth and his family controlled more than 54 per cent of Thainox, which booked a consolidated net loss of Bt1.16 billion in 2008, against a consolidated net profit of Bt134.08 million in 2007.
       Late last year, employees of Thainox staged a protest over changes to their pay and welfare as they were asked to sign new contracts which substantially cut welfare and bonus payments.
       Steel companies have been hit by a sharp decline in prices, along with those of other metals.