A preferred bidder for an electronics unit of the financially troubled Dongbu Group may be selected as early as this week, industry sources said Sunday.

Dongbu, South Korea's 18th-largest conglomerate, and its main creditor, the Korea Development Bank, have been seeking to sell Dongbu HiTek Co., the world's ninth-largest foundry, which makes chips for companies that don't have semiconductor fabrication facilities.

The troubled conglomerate wants to sell its 37 percent stake in Dongbu HiTek for an estimated price of some 200 billion won (US$186 million).

So far, four potential bidders, including China's Semiconductor Manufacturing International Corp. (SMIC), have joined the race to buy Dongbu HiTek.   

South Korean tech giants, including Samsung Electronics Co. and SK hynix Inc., have not expressed intent to join the bid.  

Founded in 1997, Dongbu HiTek has focused on the semiconductor business, with its portfolio covering CMOS image sensors, power management integrated circuits and digital audio amplifier chips.

Dongbu Group, whose affiliates range from insurance and construction to steelmaking firms, has been under pressure from its creditors to improve its shaky financial status.

By: DocMemory
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