Hyundai Securities Shareholders Sue to Block Sale to AIG

In another challenge to its acquisition plans, minority shareholders in Hyundai Securities filed suit in a South Korean court on Monday in an effort to block the sale of 35 percent of the company and two financial investment trusts to an investment consortium headed by American International Group.(See IJ Website Sept.10 & 11)

The claimants are challenging Hyundai’s decision to price an offering of preferred shares at 7000 won ($5.40), as demanded by AIG, rather than the $7.00 the company had been seeking. They assert that the move was illegal, and ignores the rights of other shareholders.

AIG has not yet commented on the action, but it appears that it could delay the closing of the deal, which was slated for next month, by at least two or three months.