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Up to eight auto makers bid for Ssangyong

SEOUL - As many as eight auto makers from South Korea and abroad are competing to take over Ssangyong Motor Co, creditor-bank sources said.

The foreign bidders for the South Korean specialist manufacturer of sport-utility (SUV) and recreational vehicles include leading auto makers from China, India and Europe, the sources said, refusing to give further details.

They made it clear, however, that the world's big three auto makers - General Motors, Ford Motor and DaimlerChrysler - failed to show any interest in Ssangyong.

"In the preliminary stage, Ssangyong creditors have received takeover bids from seven to eight auto makers, including a South Korean auto maker," a creditor source said, declining to identify the bidder from South Korea. "The successful bidder will be selected through a fair and transparent process as soon as possible."

He said Ssangyong could be very attractive to auto makers wishing to hone specialization in SUV and recreational vehicles or diversify their business portfolio into the non-sedan automotive segment.

According to Chohung Bank, the main creditor for Ssangyong, creditors will receive letters of intent through Seoul-based Samil Accounting Corp by this Wednesday before picking the priority negotiator early next month.

Creditors and Samil will single out the priority negotiator through the screening of the bidders' assets, financing capabilities, post-takeover management capability and long-term vision.

Despite a contraction in domestic sales, Ssangyong has increased its sales 1.1 percent on year to 1.72 trillion won in the first half, with its half-year net profit soaring 154.3 percent to 306.2 billion won.

(Asia Pulse/Yonhap)

Nov 18, 2003

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