South Korean retailer Lotte Group, which is in the race to buy a domestic energy developer, sees steelmaker POSCO as the frontrunner in an auction estimated at USD 3 billion.

Mr Shin Dong bin VC of Lotte Group said that "POSCO has a strong chance. We cannot help it. We will focus on cross border M&A from now on."

Lotte and POSCO are two final bidders for Daewoo International Corporation, in which financial institutions are offering up to a 68 percent stake.

(Sourced from www.reuters.com)