 The hostile bid is seen as a litmus test for foreign takeovers |
South Korea's biggest tobacco maker KT&G is stepping up efforts to repel a controversial $10bn (�5.7bn) takeover by a group of US investors. Chief executive Kwak Young-kyoon said 40% of KT&G shareholders were opposed to the hostile bid, led by US investors Carl Icahn and Warren Lichtenstein.
KT&G's board was considering "measures to defend" its position, he said.
If successful, the hostile bid would be the first of its kind by a foreign-led group in South Korea.
US pressure
The 60,000 won-per-share offer by Icahn and Steel Partners, led by Mr Lichtenstein, has faced broad opposition in South Korea.
"We expect pressure from the US investors to continue, and are considering several measures to defend against threats to our management over the long term," Mr Kwak said.
KT&G said it believed that 35% of the group's shareholders, including Franklin Mutual Advisers - which holds the biggest single stake in the firm - were in favour of the bid.
A former state monopoly, which is more than 60%-owned by foreign investors, KT&G is by far the biggest player in the world's seventh-largest cigarette market.
The bid could serve as a litmus test for other overseas bids for leading South Korean companies in which foreign investors have a significant stake, such as in steelmaker Posco.
One-Minute World News 
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