A consortium led by construction firm HDC Hyundai Development Company has been named as the preferred bidder to acquire South Korea's second-biggest carrier, Asiana Airlines.<br />Once finalized,... HDC will be a group that encompasses aviation, construction, distribution and logistics.<br />Lee Seung-jae reports.<br />HDC Hyundai Development Company has long been a leader in South Korea's construction and distribution industry.<br />However, they are looking to diversify their business with the acquisition of Asiana Airlines.<br />Having outbid two other companies for Kumho's 31 percent stake in the carrier,... HDC's financial asset ranking will jump from 33rd to 17th once the deal is done.<br />It's thought HDC will pay two-point-one billion U.S. dollars for the airline.<br />In addition, there will be a huge synergy effect for HDC,... if they're able to combine Asiana Airlines with their hotel, resort, and duty-free businesses.<br />However, experts warn there may be a so-called 'winner's curse'.<br />With concerns about the airline's massive debt levels and unstable fund flows,... the asset could be valued far less than how much HDC is paying for it.<br />"The debt ratio is quite high for Asiana Airlines. HDC should pay attention to the company's financial soundness first, gain some corporate bond ratings, and then expand externally."<br />Others are more optimistic,... saying the acquisition will invigorate the stagnant domestic aviation industry by making Asiana Airlines more competitive with the nation's number one carrier, Korean Air.<br />Lee Seung-jae, Arirang News.<br />
