Hyosung drops bid to acquire Hynix

By Nam Kwang-sik
SEOUL, Nov. 12 (Yonhap) -- South Korea's Hyosung Group said Thursday that it has
decided to drop its bid to take over troubled chipmaker Hynix Semiconductor Inc.
due to unfounded rumors, including government favor for its bid.
In September, Hyosung Corp., the flagship unit of the conglomerate with
businesses ranging from chemicals to heavy machinery, submitted a letter of
intent for the purchase of a 28.07-percent stake in Hynix to become the biggest
shareholder of the world's No. 2 chipmaker.
"We made a very painful and difficult decision to withdraw our bid for Hynix as
various unfounded rumors including the government's favor for our bid have made
it difficult for us to seek a fair takeover," Hyosung said in a regulatory
filing.
The comments are in reference to speculation that in-law relations between
President Lee Myung-bak and the Hyosung chairman may have had undue influence on
the group's takeover bid.
ksnam@yna.co.kr
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