Founding families of South Korean zinc refiner in bitter feud for control

SEOUL - The battle for control of the world's largest zinc refiner between its two founding families faces a critical deadline that could mark the beginning of the end of a multibillion-dollar feud.

- BLOOMBERG

The power struggle over Korea Zinc - founded by two friends who fled North Korea, and is still held by the Choi and the Chang families - has captured headlines.

Shareholders had until the end of Oct 14 to decide whether to accept a twice-sweetened 830,000 won-per-share takeover offer from a consortium made up of its biggest shareholder - the Chang family's Young Poong Corp - and MBK Partners, one of North Asia's biggest private equity firms. The two said last week there would be no further price increases.

On paper, that leaves a rival offer ahead - a buyback launched by chairman Choi Yun-beom. His 890,000 won-a-piece gambit, supported by buyout firm Bain Capital, is over 7 per cent higher, valuing the company at 18.4 trillion won (S$17.8 billion). Yet the stock has traded well short of that level, indicating continued scepticism among investors.