Hyundai Heavy picked as preferred bidder for trading firm

SEOUL, Sept. 29 (Yonhap) -- Hyundai Heavy Industries Co., the world's biggest shipbuilder, has been chosen as the preferred bidder for Hyundai Corp., the South Korean trading company's main creditor said Tuesday.

In May this year, Hyundai Heavy submitted its bid to acquire Hyundai Corp., but
the deal failed due to differences over price.
Korea Exchange Bank has said Hyundai Corp. will be able to enjoy financial
stability if it is taken over by Hyundai Heavy.
Analysts said the purchase price to buy 50 percent plus one share of Hyundai Corp.
may be set at about 250 billion won (US$210.9 million).
The creditors of Hyundai Corp. have been seeking to sell the trading company
since last year. Hyundai Corp. was bailed out by creditors in 2004 through a
debt-for-equity swap.
Late last year, the creditors extended a debt workout program for Hyundai Corp.
by one year due to the global economic credit crunch.
Hyundai Corp. is involved in oil and gas projects in countries such as Vietnam
and Qatar, and has a Chinese shipbuilding venture.
Hyundai Heavy, Hyundai Motor Co. and Hyundai Corp. were part of the Hyundai Group
before the conglomerate started breaking up in 1999.
sam@yna.co.kr
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