NU Online News Service, Jan. 17, 6:14 p.m. – American International Group Inc., New York, has called off negotiations to invest in three financial services affiliates of the Hyundai Group, Seoul, after months of announcements and rumors.
The company put out a statement emphasizing its commitment to its own well-established operations in the Korean market but giving up on a “memorandum of understanding” with the Korean Financial Supervisory Commission.
The memorandum, signed in August 2001, said AIG would negotiate with regulators and company executives about the possibility of acquiring Hyundai Investment Trust and Securities Company, Hyundai Investment Management Company Ltd. and Hyundai Securities Company Ltd.
The memorandum expired at the end of 2001. AIG extended it until Jan. 15, but “despite the best efforts of all the parties concerned, it appears that an agreement will not be attained,” AIG says.
Korean newspapers reported AIG called off the negotiations because of concerns it might end up having to take responsibility for hidden Hyundai debts and liabilities.