Hyundai Heavy makes bid for former sister firm

Seoul: Hyundai Heavy Industries, South Korea's top shipbuilder, said that it has signed a preliminary agreement to buy a local trading company. Late last month, Hyundai Heavy was picked as the preferred bidder for Hyundai Corp which has been up for sale since last year. In May this year, Hyundai Heavy submitted its bid to acquire Hyundai Corp, but the deal failed due to differences over price. ?Industry sources estimate the purchase price to buy 50 per cent plus one share of Hyundai Corp at about 250bn won (US$210m). ?Hyundai Corp, bailed out by creditors in 2004 through a debt-for-equity swap, is involved in oil and gas projects in countries such as Vietnam and Qatar, and has a Chinese shipbuilding venture. ?Late last year, the creditors extended a debt workout program for Hyundai Corp by one year due to the global economic credit crunch. ?Hyundai Heavy, Hyundai Motor Co and Hyundai Corp were part of the Hyundai Group before the conglomerate started breaking up in 1999.  [16/10/09]