Korea pre-markets KT&G GDR

Under the lead management of global co-ordinators Goldman Sachs and UBS Warburg, with Dongwon and Hyundai Securities as joint-bookrunners, pre-marketing began on Monday for the final piece in the government's privatization of its tobacco monopoly KT&G. Formal roadshows are scheduled to start around July 1. Ironically this is the date when Korea lifts all price controls on the domestic production of cigarettes and international giants such as British American Tobacco (BAT) will begin to step up efforts to eat into KT&G's market share.