US financial giant Citigroup has jumped into the battle to take control of Korea Thrunet, the country's third-largest broadband Internet provider, an auction manager said Tuesday. A Citigroup's unit, Citibank Financial Products, handed in a letter of intent to buy Thrunet Monday, along with two South Korean companies - Dacom Corp and Hanaro Telecom, Samjong KPMG said.
The three were asked to present bidding proposals by December 13, it said, adding Citigroup's entry was unexpected.
"We will try to select the preferred bidder this year. Along with the price, another key factor is their business plan," Samjong official Lee Un-Kil said.
Thrunet with 1.2 million subscribers, or 11 percent of the market, has been up for sale since it sought court protection in March last year. Its first tender in 2003 failed because of low bid prices.
Samjong officials said the price would be higher than that of the first tender due to Citigroup's participation.
Foreign investors are not allowed to own more than 49 percent of a strategic local telecom company like Thrunet but Citigroup could form a consortium to stay in the auction, they said.
Market watchers had expected a two-way race between Dacom, an affiliate of South Korea's second-largest conglomerate LG Group, and Hanaro, the country's number two broadband Internet operator, which is controlled by US funds.
Dacom, the country's second-largest long-distance telephone operator, and Hanaro regard Thrunet as crucial for their fight against market leader KT Corp.
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