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Saturday, October 24, 1998

Hyundai asks for 2.3 bn dollars to take over ailing Kia Motors 

REUTERS  
Seoul, Oct 23: South Korea's Hyundai Motor Co has asked for about 3.1 trillion won (2.3 billion dollars) in fresh preferential loans if it is to take over ailing Kia Motors Corp, documents today revealed.

The details emerged in bidding documents submitted for the auction of bankrupt Kia and sister firm Asia Motors Corp on Monday, which Hyundai won in a surprise development after ousting favourite Ford Motor Co.

Hyundai won the deal after it asked for 7.3 trillion in write-offs of Kia's debt, estimated at between 12 trillion and 16 trillion won (up to 12 billion dollars), reportedly the second lowest request from among the four bidders.

But other details of Hyundai's bid emerged for the first time in the bidding documents seen here today.

Apart from its request for fresh loans, Hyundai said it also attached other conditions, including exemption from repayments of any hidden debt at Kia and Asia Motors.

``We attached some conditions in the bid because bidders were allowed to do so under auctionguidelines (set) by the Kia auction committee,'' a Hyudai spokesman said.

``However, the conditions, even if creditors refuse to accept them, will not (reverse) our plan to take over Kia,'' he said.

An official of Korea Development Bank (KDB), Kia's main creditor, said Hyundai must have attached these conditions largely because it wants to have more advantages in negotiations with creditors.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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