Carl Icahn and Warren Lichtenstein have ended their alliance under which they had offered together to buy KT&G Corp, South Korea's top tobacco company, according to a regulatory filing by the US investors.

The move came after KT&G, a former state monopoly, said earlier this month it would return up to US$ 2.9 billion to shareholders in the next three years, bowing to pressure from the US investors' group to boost shareholder value.
Icahn and Lichtenstein's Steel Partners in late February offered to KT&G's board to buy the firm for 60,000 won per share, valuing it at US$ 10 billion in the first unsolicited foreign takeover bid for a major Korean firm.
The US investors have been pressing management to sell some of the firm's more lucrative assets to boost the share price, but they have not filed any official tender offer with the regulator.
"The reporter, Icahn Partners Master Fund LP, and its allies report that the contract with Steel Partners II LP to jointly exercise voting rights has expired on 22 August, 2006, according to the terms of the contract," Icahn said in the filing with Seoul's financial supervisory service.
It was not clear in the filing how the change would affect their investment strategy with KT&G and the previously announced takeover bid. Icahn-controlled funds own 4.87 per cent of KT&G while Steel Partners have a 2.81 per cent stake.
"Icahn and Steel Partners did not renew their partnership contract this month," said a KT&G spokesman by telephone. "It means their official partnership has been terminated."
KT&G declined to comment on the implication of the move. Representatives for Icahn and Steel Partners couldn't be reached for comments.
Shares in KT&G fell as much as 7 per cent on Monday when the decision became known. (pi)