Korean Air chair dies just weeks after being forced off the board
Cho Yang-ho's death raises the possibility of a bidding war over his stake in Hanjin Kal Corp, but his family will fight to keep control of the airline
Seoul — Korean Air patriarch, chair and CEO Cho Yang-ho died of a chronic illness on Monday, weeks after shareholders ended his 27-year tenure on the board of the country’s biggest carrier due to perceived leadership failings. Shares of the family-controlled airline and its parent, Hanjin Kal Corp, jumped on the hope of better governance under new management following Cho's death. Analysts say the death raises the possibility of a bidding war over the patriarch's stake in Hanjin Kal, but his family would fight to defend control of the airline. "Of course, his family will try to inherit his shares, but that can take time and money ... that opens a window for expectations about a takeover battle," said Um Kyung-a, a Shinyoung Securities analyst. Inheritance tax the family needs to pay may amount to about 170-billion won ($148m), worth half the entire Hanjin stake held by Cho, some analysts estimate. Cho holds a 17.8% stake in Hanjin Kal. Cho, his relatives and the family's academic fo...
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