KOREA: INDUSTRY: Telecom: Regulators bear down on wireline operators: Event Driven Buy Signal: Hanaro Telecom
The Korean Fair Trade Commission (FTC) has made the determination that during the past three years Korean wireline operators engaged in price fixing.
The assessed the penalties:
KT Corp: W$116.0 billion
Hanaro: W$ 2.4 billion
Dacom: W$ 1.5 billion
Implications:
Sell on KT Corp as concensus market expectations were for closer to W$100 billion. This may affect price as analysts re-value with higher penalty costs.
Buy on Hanaro as markets priced in a fine assessment closer to W$10 billion.
Dacom shows weak fundamentals relative to its industry peer group and so should be regarded as a weak event driven choice.
The assessed the penalties:
KT Corp: W$116.0 billion
Hanaro: W$ 2.4 billion
Dacom: W$ 1.5 billion
Implications:
Sell on KT Corp as concensus market expectations were for closer to W$100 billion. This may affect price as analysts re-value with higher penalty costs.
Buy on Hanaro as markets priced in a fine assessment closer to W$10 billion.
Dacom shows weak fundamentals relative to its industry peer group and so should be regarded as a weak event driven choice.
posted by howa at
5/26/2005
