Abu Dhabi Investment Company (ADIC) and two other foreign companies are bidding for South Korea's Daewoo Engineering & Construction Co, a source from Daewoo Engineering said on Tuesday.   

Private equity firm MBK Partners had dropped out of the bidding, while AC Development of the United States and Saudi Arabian investment company S&C International were in the auction, the source told Reuters.

'Bidding will close by November 11, to be evaluated through November 16 to pick a preferred buyer,' said the source, who asked not to be named because of the sensitivity of the matter.

MBK Partners could not immediately be reached for comment.

Kumho Asiana Group, parent group of the country's No.3 builder, has put a majority stake in Daewoo Engineering up for sale in a deal estimated at about $2.6 billion.

Korea Development Bank (KDB) and Nomura, which are handling the sale, had shortlisted bidders into four groups. They are set to receive final bids between November 4 and 11, and complete the auction by the middle of this month.

Last month, KDB chief executive Min Euoo-sung told reporters that Daewoo Engineering would most likely be sold to a foreign company.

Abu Dhabi, which is part of the United Arab Emirates, said in June that it was diversifying investments into South Korea and Asia.

AC Development runs project construction and other engineering services, according to its website. -Reuters