Hyundai Rejects AIG’s Price Cut
Hyundai Securities took a hard line on the sale of South Korea’s No. 2 brokerage to American International Group, saying a price cut was impossible.
AIG and fellow U.S. investor W.L. Ross & Co. have threatened to cancel an $860-million investment to take control of Hyundai Securities and its two troubled trust units unless their demand for a lower price is met.
“In any case, a price cut is impossible,” Hyundai Securities President Hong Wan-soon said in a statement. “AIG earlier agreed to the price and Hyundai’s board approved it based on the mutual agreement [on the price].”
AIG Chairman Maurice Greenberg on Thursday also turned up the heat in talks with the Korean firm.
A failed sale would dampen the Korean government’s effort to pump new blood into Korea’s ailing corporations and improve international confidence in the nation’s reforms.
Shares in Hyundai Securities have lost almost a fifth of their value in 10 days.
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