Hyundai Group drops planned lawsuit against Hyundai Motor

Hyundai Group plans to cancel filing a law suit on the failed purchase of Hyundai Engineering & Construction Co., the group said Tuesday.

Hyundai Group hopes a compromise plan will come from Hyundai Motor Group, which was chosen by the builder’s shareholders as a preferred bidder, according to the statement.

Hyundai Motor Group signed a memorandum of understanding with creditors of the builder last month to acquire a 34.88 percent stake of Hyundai E&C.

In November, Hyundai Group was chosen over Hyundai Motor Group to acquire Hyundai E&C with a bid of about 5.5 trillion won ($4.9 billion). But it was deprived of preferred bidder status on Dec. 20 due to ambiguities about the source of a part of its funds.

Hyundai Motor Group and the creditors of Hyundai E&C have begun final price negotiations.

According to industry sources, Hyundai Motor Group is seeking to reduce prices due to additional debts the builder was belatedly found to be holding.

The negotiations are slated to be closed by Friday, but could go on an additional three working days if the two sides fail to reach an agreement.

If the negotiations pass off without major hitches, the creditors plan to seal the deal following a shareholders’ meeting within the month.

(From news reports)