Report AIG, Hyundai Near Agreement

September 4, 2001

A report in London’s Financial Times says that the AIG Group of investors and the management of Hyundai Securities are near to a compromise aimed at breaking the impasse which has held up AIG’s acquisition of three Hyundai financial units in Korea for over two weeks.(See IJ Website August 24 and 30)

According to the FT, AIG would accept a smaller stake than the original 35 percent it sought to acquire by allowing Hyundai’s existing shareholders to buy into the deal at the same price, 7000 won (around $5.49) per share as it has..

The decision is a climb down by Hyundai from its position that the price had been established at 8940 won ($7.00), but it must still be approved by the board of directors, and the FT indicated that if there’s any further delay, AIG’s patience may finally be exhausted.

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