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Hyundai Heavy's bid for Hyundai Corp denied

Hyundai Heavy's bid for Hyundai Corp denied

Seoul: Creditors of Hyundai Corp rejected a bid by Hyundai Heavy Industries to buy the local trading company because the bidding price fell short of creditors' expectations, industry sources told Yonhap yesterday.

Hyundai Heavy, the world's largest shipyard, submitted a proposal Wednesday to buy more than 50 percent of Hyundai Corp. as part of efforts to win more orders and expand into new businesses. Industry sources estimated the deal's value at up to 300 billion won ($238 million).

Woori Bank, the Korea Development Bank and other creditors own a combined 79.8 percent of Hyundai Corp. The creditors 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, creditors extended the workout debt 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. [15/05/09]