GM looks at Ssangyong bid
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SUV maker Ssangyong has been restructuring since December 1999.
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SEOUL, South Korea (Reuters) -- General Motors Corp, the world's largest auto maker, has thrown its hat into the ring in a race to buy South Korean sports-utility vehicle maker Ssangyong Motor Co.
A spokesman at GM's South Korean unit said Thursday the car giant had submitted a letter of interest in buying Ssangyong.
"GM has communicated its intention to participate in the auction of Ssangyong Motor," said Rene Kreis, a spokesman for GM Daewoo Automotive & Technology Co.
However, he said that GM had not definitely decided to bid.
"It is just exploratory," he said, referring to the company's position.
Creditors want to sell a 55.4 percent stake in Ssangyong Motor, which has been undergoing creditor-led debt restructuring program since December 1999. The car maker was spun off from the now defunct Daewoo Group.
The stake would be worth 625 billion won ($523 million) at Wednesday's closing share price, although it would be expected to carry a premium since it is a controlling stake.
If GM moves to submit a formal buyout proposal, it is expected to compete with some 10 potential bidders for Ssangyong. Local media have said Shanghai Huizhong Automotive, a unit of Shanghai Automotive Co, is another prominent candidate.
French car maker Renault was also tipped by media as getting ready to join the auction, but the company denied this week reports that it had submitted a letter of interest.
Copyright 2003
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
