S.Korea prosecutors raid more Lotte Group firms (updated)

Lotte

14/06/2016 02:22

* S.Korea prosecutors raid more Lotte Group firms 
    * Lotte Group facing slush fund probe - sources 
    * Lotte's hotel unit forced to pull IPO amid investigation 
 
 (Updates with background on Lotte Group investigation) 
    SEOUL, June 14 (Reuters) - South Korea's Lotte Group said 
prosecutors are conducting additional raids on at least ten 
units including Lotte Chemical  011170.KS , heaping further 
pressure on the sprawling beer-to-petrochemicals conglomerate. 
    Lotte Chemical, Lotte Confectionery Co Ltd  004990.KS  and 
unlisted Lotte Engineering and Construction  LTCNS.UL  were 
among the firms raided, a spokesman for the country's 
fifth-largest conglomerate said.  
    A Lotte Chilsung Beverage Co Ltd  005300.KS  spokesman also 
said the firm was being raided. 
    The new raids follow raids on Friday on the offices of Lotte 
Group and several Lotte companies including unlisted Hotel 
Lotte. 
    People familiar with the matter have said the Friday raids, 
which involved about 200 prosecutors and investigators, were 
part of an investigation into a possible slush fund. 
    The Seoul Central Prosecutors' Office could not be 
immediately reached for comment. 
    The investigators' probe has already led to the cancellation 
of an up to $4.5 billion initial public offering for Hotel 
Lotte. Lotte Chemical, the conglomerate's biggest listed unit, 
has also bowed out of bidding for U.S.-based Axiall Corp 
 AXLL.N  in the wake of raids.  urn:newsml:reuters.com:*:nL4N195138 
     
 
 (Reporting by Joyce Lee and Se Young Lee; Additional reporting 
by Jee Heun Kahng; Editing by Edwina Gibbs) 
 ((vincentsy.lee@thomsonreuters.com; +822 3704 5646; Reuters 
Messaging: vincentsy.lee.thomsonreuters.com@reuters.net; follow 
me on Twitter @Rover829)) 
 
Keywords: LOTTE GROUP PROBE/