Creditors reject Hyundai Heavy's bid for trading firm

Creditors of Hyundai Corp. rejected a bid by Hyundai Heavy Industries to buy the local trading company because the bidding price fell short of creditors' expectations, industry sources said Thursday .
Hyundai Heavy, the world's largest shipyard, submitted a proposal Wednesday to buy more than 50 per cent of Hyundai Corp. as part of efforts to win more orders and expand into new businesses .
Industry sources estimated the deal's value at up to 300 billion won (US$238 million).
Woori Bank, the Korea Development Bank, and other creditors own a combined 79.8 per cent of Hyundai Corp.
The creditors have been seeking to sell the trading company since last year. Hyundai Corp. was bailed out by creditors in 2004 through a debt-for-equity swap.
Late last year, creditors extended the workout debt program for Hyundai Corp. by one year due to the global economic credit crunch.
Hyundai Corp. is involved in oil and gas projects in countries such as Vietnam and Qatar, and has a Chinese shipbuilding venture.
Hyundai Heavy, Hyundai Motor Co . (KSE:005380) and Hyundai Corp. were part of the Hyundai Group before the conglomerate started breaking up in 1999.
Hyundai Heavy fell 4.52 per cent to close at 232,500 won on the Seoul bourse on concerns that its bid for the trading company would further deplete its shrinking cash reserves.
Hyundai Corp. dropped 7.75 per cent to close at 18,450 won.