eBay offered $530 million for buying Korean affiliate’s remainder

eBay Inc. offered about $530 million to buy the remainder of South Korean affiliate Internet Auction Co. Ltd. as it pushes deeper into Asia, saying key shareholders had accepted a 79 percent increase to an earlier offer.

The world's biggest online auctioneer said on Wednesday it had agreed to pay key institutional shareholders $325 million to raise its stake in South Korea's industry leader to 86 percent from 62 percent.

San Jose, California-based eBay said it intended to start a tender offer in coming weeks for the remaining shares of Internet Auction, at a 21.6 percent premium to Tuesday's closing price, informs Reuters.

There are about 10 online auction operators in South Korea, including www.waawaa.com and www.playback.co.kr, offering a wide range of products including home appliances, cars, jewelry, furniture and even meat.

Internet Auction also competes with Daum Communications, LG e-shop and Interpark in providing fixed-price online shopping.

In Wednesday trading on the Seoul exchange, shares of Internet Auction rose 12,300 won, or 12 percent, to close at 115,100 won. For the year, the share are up 72 percent. Daum shares rose 2,600, or 8 percent, to 35,100 won, and Interpark rose 210, or 12 percent, to 1,960 won, says International Herald Tribune.

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