[Asia Economy Reporter Yoo Je-hoon] Delta Air Lines, regarded as an ally of Cho Won-tae, Chairman of Hanjin Group, has once again increased its stake in Hanjin KAL. On the 9th, Delta Air Lines disclosed that it recently purchased an additional 546,575 shares (0.92%) of Hanjin KAL, raising its stake from the previous 13.98% to 14.90%.
Earlier, when the management dispute within Hanjin Group intensified last year, Delta Air Lines secured a 10.00% stake in the group's holding company. Since then, Delta Air Lines announced two further stake increases this year: 1.00% on February 24 and 2.98% on March 5.
Industry insiders note that since both Hanjin Group and former Korean Air Vice President Cho Hyun-ah, private equity fund KCGI, and Bando Construction are all competing to expand their stakes in preparation for a prolonged battle, there is speculation that Delta Air Lines may increase its stake up to just under 15%, the threshold for corporate mergers under the Monopoly Regulation and Fair Trade Act.
Meanwhile, as Delta Air Lines continues to increase its stake, the three-party coalition's opposition is intensifying. They criticized Delta Air Lines' stake expansion, stating, "If Korean Air is placed at a disadvantage during joint venture (JV) profit negotiations due to a foreign airline securing a white knight stake to support the reappointment of a single major shareholder's director, this could constitute a serious breach of fiduciary duty by Hanjin Group's management." They added, "The management and Delta Air Lines must strictly comply with laws and regulations regarding the acquisition of Hanjin KAL shares to ensure no illegal activities occur."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
