LG Telecom to Merge With Dacom, Powercom on Jan. 1
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LG Telecom Ltd., South Korea’s smallest mobile-phone operator, plans to merge with affiliates LG Dacom Corp. and LG Powercom Corp. to compete against KT Corp. and SK Telecom Co.
LG Telecom will offer 2.149 shares for each LG Dacom stock and 0.742 share for every LG Powercom stock, Seoul-based LG Telecom said in a statement today. LG Dacom’s 41 percent stake in LG Powercom will be canceled to boost shareholder value, it said. The combined entity is expected to begin operations on Jan. 1, LG said.