American International Group and its partners appear to be back on track for the completion of their acquisition of three financial units from South Korea’s Hyundai Group. AIG suspended its “due diligence” study at the end of October, partially due to the Sept. 11 attacks, but also because the parties had encountered some significant obstacles.
Now AIG has resumed its due diligence examination of Hyundai Securities Co. and two investment trusts it manages, and has been given additional time by the Korean financial services authority to complete negotiations, and finalize the $875 million deal by making the investment it agreed to last August.
According to a report by Reuters News Agency, AIG has dropped its demand for a higher dividend payment on the preferred shares it will acquire, and is in the process of reaching a compromise on their convertibility into common shares. In exchange the reduced share price of 7000 won (around $5.56 a share) will be adhered to, in spite of objections from minority shareholders and Hyundai’s union’s, who have filed suit to force a higher price.
If all goes well, the parties hope to finalize the deal before the end of the year.
Was this article valuable?
Here are more articles you may enjoy.
American Family to Acquire Bowhead Specialty in $1.2B Cash Deal 
Lemonade Posts $43M Loss for Q2 as it Continues to Grow Customer Base 
UBS Fined $125M by US Regulators for Money Laundering Violations 
Police Am-Bush Catches 74 Drivers Using Cell Phones 
