Korea Telecom ADR enters crucial final days

Korea Telecom enters its last few days of roadshows with the government still hopeful of pricing a deal at a premium to the stock''s underlying share price.
The final few days of trading in New York and Seoul will be critical to the fortunes of a $2.31 billion offering that is showing every sign of presenting the Korean government with the same pricing problems of virtually every privatization before it.

Having averaged a 9% premium to underlying since the beginning of this year, Korea Telecom's outstanding ADR had edged down to 5.5% at the end of last week and most market participants believe that it will be at parity to the underlying by Wednesday, when the 55.5 million share deal is scheduled to price overnight in Asia.

In a bid to stop the inevitable short selling pressure that...

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