NU Online News Service, Aug. 30, 5:20 p.m. – American International Group Inc., New York, and the Hyundai Business Group, Seoul, are finding themselves at odds after AIG threatened to withdraw its bid to take over three insolvent financial units in the Korean conglomerate if its price demands are not met.
Before signing a memorandum of understanding, the two parties agreed AIG would pay $6.96, or 8,940 won, for each new share Hyundai will issue. AIG is demanding that the price be cut to $5.45, or 7,000 won.
Hong Wan-soon, president of Hyundai Securities Company, says the Hyundai board of directors has already approved the initially set price.
“A cut in the price is impossible,” Hong announced in a press release.
Representatives for two other Hyundai units AIG is bidding for, Hyundai Investment Trust & Securities Company, and Hyundai Investment Trust Management Company, were not immediately available for comment.