Neither cofounding family holds majority of Korea Zinc
Protracted takeover battle expected
MBK proposes new board slate
Shares rise again to alltime high close

SEOUL, Oct 28 Reuters Korea Zinc said on Monday it has secured 9.85 of the company39;s shares in a 1.5 billion buyback that it launched to block shareholders from selling their stakes to its top investor Young Poong and private equity firm MBK.

Bain Capital, which backs Korea Zinc39;s current leaders, separately secured a 1.41 stake in the company, the world39;s biggest zinc smelter said in a regulatory filing.

Run by the Choi family, Korea Zinc has been in a bitter fight for control of the 18 billion zinc empire with the cofounding Chang family, whose conglomerate Young Poong made an initial joint offer with MBK in September.

The latest transactions suggest the overall backing Korea Zinc39;s management has won so far is smaller than the stake held by MBK and Young Poong. That raised investor expectations for a prolonged takeover battle, driving Korea Zinc shares to record highs on Monday.

MBK and Young Poong together own about 38.5 of Korea Zinc.

Before the buyback, Korea Zinc39;s Choi family had the backing of shareholders that owned up to 36 of the company, including strategic partners such as Hyundai Motor Group, according to analysts.

Korea Zinc said on Monday it had spent 2.07 trillion won 1.5 billion on the buyback and would eventually cancel all of its newly acquired shares to raise shareholder…