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Hyundai Heavy selected to take over Hyundai Corp

Hyundai Heavy selected to take over Hyundai Corp

Seoul: Hyundai Heavy Industries, the world's leading shipyard, has been chosen as the preferred bidder for Hyundai Corp., a local trading company, the trading company's main creditor said yesterday.

Korea Exchange Bank said in a statement that STX Group and Hyundai Heavy Industries were the only two companies that submitted bids. The bidding closed last Friday.

STX had made its bid with the condition that it would not participate in the final round if Hyundai Heavy Industries were also submitting a bid.

If acquired by Hyundai Heavy, "Hyundai Corporation will be able to increase its trade sales as well as actively invest in developing its foreign resources sector," a KEB official said. "Hyundai Heavy Industries is also qualified to normalize business for Qingdao Hyundai Shipbuilding, a subsidiary of Hyundai Corporation that has been suffering amid the downturn in the shipbuilding industry."

In May, Hyundai Heavy Industries submitted the only bid for Hyundai Corp., but the deal fell through because the offer was short of creditor expectations.

The creditor group will review the proposal before mid-October and make a final contract in mid-November. The purchase price, for a 50 percent stake plus one share of Hyundai Corporation, is expected to be set at about 250 billion won ($210.8 million). Meanwhile, shares of Hyundai Corporation dropped 3.8 percent to 17,700 won yesterday, while those of Hyundai Heavy climbed 0.51 percent to 199,000 won.  [30/09/09]