Is a third-party buyout of Asiana Airlines around the corner?

Amid ongoing delays in a high-profile merger between South Korea’s top two air carriers Korean Air and Asiana Airlines, some market watchers are speculating that strategic investors are preparing for a possible third-party buyout of Asiana. Private equity funds are reportedly releasing requests for proposals to interested parties regarding the 1.8t won ($1.3b) Korean Air-Asiana deal to solicit responses, according to some investors. The requests come amid delays in the deal due to international authorities’ antitrust concerns. "It is possible that with foreign antitrust regulators stalling to make decisions regarding the (Korean Air-Asiana) deal, and with the deal having dragged for more than three years, some investors are looking for their chances to weigh in," said an official from a private equity fund on the condition of anonymity. If such a large-scale deal falls out, investors will need to make quick responses, and it is possible that they are making preparations in advance (for such a case)," he said. The nation’s seventh-largest conglomerate Hanwha Group is rumored to be another player behind the scenes, currently gauging its foray into the Korean Air-Asiana deal. In July, Hanwha Group reportedly contacted Pan Ocean -- a shipping company and a subsidiary of Korean agri-food giant Harim Holdings -- to offer a buyout of its stake in Hanjin Kal, the holding company of Hanjin Group. Hankin Kal maintains oversight of its subsidiaries, including Korean Air. Currently, Pan Ocean holds a 5.85% stake in Hanjin Kal, while Hanjin Kal owns a 26.13% stake in Korean Air.<br/>