| |
Hyundai group plans takeover of Kia Motors
REUTERS
Seoul, March 22: South Korea's Hyundai group plans to takeover financially troubled Kia Motors Corp, a Hyundai spokesman said on Sunday. The spokesman said it was not clear which units of Hyundai would takeover Kia, but that a report for the acquisition had been prepared by Hyundai Motor Co Ltd and the group's research arm."In order to create an auto manufacturer which has an annual production capacity of 2.5 million and is globally competitive, it is better to merge firms rather than increase production of existing firms, and Hyundai is the only company which can takeover Kia and normalise operations," said the Hyundai report. Kia Motors, the flagship of South Korea's previously eighth largest Kia Group, filed for court receivership last year as it teetered on failure. The government had said it would make the state-run Korea Development Bank, the largest shareholder of Kia Motors, by changing the debt for shares. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
|
 |
