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AIG-Led Consortium Nears Acquisition of Korean Brokerage

By Staff Writer

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NU Online News Service, Aug. 13, 4:05 p.m. – American International Group Inc., New York, is leading a consortium that is likely to buy at least 34% of Hyundai Securities Company, Seoul, an insolvent brokerage in Korea, according to the Korea Economic Daily, a Korean business daily.

The consortium will buy new shares to be issued by Hyundai, and the Korean government will funnel $467 million, or 650 billion won, in public funds into the insolvent brokerage to help it recapitalize, the paper says.

AIG plans to invest a total of $853.4 million, or 1.1 trillion won, in two defunct financial companies in the Hyundai Business Group. The U.S. insurance company will spend $467 million purchasing a controlling share in Hyundai Securities and the remaining $386.4 million making up for losses at Hyundai Investment Trust Securities, the paper reports.

The Korean Economic Daily article can be found at http://news.naver.com/read?command=read&id=2001081300000495042