"Our talks on forming a consortium with DaimlerChrysler for Daewoo Motor are in the final stage," said the official, who declined to be named. "We will be able to conclude the talks by June 24."

He said it looked almost certain that Hyundai and DaimlerChrysler would join hands to take over ailing Daewoo Motor, which creditors expect to sell via auction by the end of September.

DaimlerChrysler has so far declined to comment on the talks over a joint bid, but industry sources said the automaker was expected to announce details of its plans to expand its Asian commercial vehicles businesssoon.

The process to bid on Daewoo begins with non-binding proposals due at the auction office by June 26.

"There's no way to take part in the auction by ourselves because of monopolyand capital issues," the Hyundai official said.

Hyundai Motor and its sister firm Kia Motors Corp command about a 75 per cent of the Korean car market, where almost one million vehicles were sold last year. Its share would approach 100 per cent if it takes over Daewoo, and the government was likely to reject such domination, analysts have said.

Still, Hyundai remains keen and has responded with a plan under which it hopes to link up with a foreign partner that would take 40 per cent of Daewoo and Hyundai 20 per cent, with 40 per cent left to Daewoo's current creditors.

Hyundai Motor's president Lee Choong-koo said last week Hyundai wanted to limit its stake in Daewoo to 20 per cent to avoid creating fears about it holding a virtual monopoly in the domestic market. DaimlerChrysler and Hyundai are among five companies expected to bid for Daewoo which, along with the rest of the Daewoo Group, ran into financial trouble last July and landed the group's 12 core firms in the hands of creditors.

--(Reuters)