Hanaro to Acquire Thrunet

SEOUL -- Hanaro Telecom Inc. said today it will acquire about 72 per cent of smaller rival Thrunet Co. in a bid to compete with market leader KT Corp. It signed an accord with Trigem Computer, Thrunet's largest shareholder and seven other companies to buy 71.95 per cent of the Internet service firm for 125.9 billion won (US$104.82 million). Hanaro will issue about 194.9 billion won of bonds convertible to shares to finance the Thrunet purchase, 78 per cent of which will mature in five years and 22 per cent in 1.6 years. The merged company will have 4.36 million subscribers, or 42.5 per cent of the local high-speed Internet market. Hanaro Telecom Inc. Korea Thrunet Co. Ltd. KT Corp.