K-pop label HYBE and S.Korean social media major Kakao rally after agreement

SM Entertainment Co

13/03/2023 02:20

** K-pop label HYBE Co Ltd  352820.KS  shares rise as high
as 7% to 196,600 won to hit a near one-month high, while social
media giant Kakao Corp  035720.KS  shares rise up as much as
7.4% to 62,400 won  ($47.40)in morning trade
    ** Cos' shares rallied after HYBE on Sunday dropped its bid
to take over its rival SM Entertainment Co Ltd  041510.KQ . 
    ** SM Entertainment shares fall as much as 21.6% in early
trade, hitting a one-month low, compared to the smaller KOSDAQ
market's  .KQ11  1.5% drop as of 0202 GMT
    ** Kakao's tender offer bid to purchase a 35% stake in SM at
the price of 150,000 won per share will continue until March 26
    ** Park Seong-guk, an analyst at Kyobo Securities, said HYBE
shares rallied as withdrawing its plan to take over SM cleared
uncertainty over the financial strain of the deal
    ** He added SM shares were crashing as chances of a new
bidder faded following HYBE's announcement to drop its takeover
bid over the weekend
    ** HYBE and Kakao said on Sunday they had agreed to
cooperate on platform businesses

($1 = 1,316.4900 won)

 (Reporting by Hyunsu Yim)
 ((Hyunsu.Yim@thomsonreuters.com;))