Hanaro Telecom Inc, Dacom Corp and a Citigroup fund have submitted bids for bankrupt South Korean broadband service operator, Thrunet Co, in a deal estimated to be worth over 400 billion won ($361 million). Thrunet Co said on Monday it received three bids from the two local companies and Citigroup Financial Products Inc by the deadline. "The three bidders have tendered letters of intent," said a spokesman at the company.
The sale would mark a first step in the overhaul of what was once the fastest-growing Internet market in the world.
Growth in South Korea's Internet sector has stalled now that three quarters of its 48 million people already have access to the Internet. Some 12 million have high-speed broadband connections.
The unexpected participation by the Citigroup fund in the race is set to intensify competition. Thrunet said it was not aware of details of the fund's proposed investment or strategies.
Thrunet has been under court receivership since March 2003, after spending heavily to catch up with rivals, including the industry leader KT Corp and second-ranked Hanaro.
Its failure was a shock to the industry and sparked concern about the health of latecomers to the broadband sector.
Hanaro, which had been reeling under mounting debt, was taken over by a consortium made up of American International Group and private equity firm Newbridge Capital last year.
The revived company, which holds 24 percent of the local broadband market, now wants to buy Thrunet to take on bigger rival KT Corp, which carries 95 percent of Korea's local voice calls and supplies half of its broadband connections.
Meanwhile, Dacom said it stood to benefit more than its rivals from the acquisition of Thrunet, which already relies heavily on Dacom's network unit for its services.