Hyundai¡¯s solo bid for Daewoo to be allowed

Korea Development Bank (KDB), the main creditor bank of Daewoo Motor, announced Tuesday that on the condition that Hyundai Motor finds a partner within a specified period, it will be allowed to make a solo bid for Daewoo Motor.

Governor Uhm Rak-Yong of KDB revealed during the afternoon that he knows about DaimlerChrysler¡¯s bidding for Daewoo Motor. However, he asserted that even if DaimlerChrysler withdraws from the bid, he will propose to the government to allow a solo bid by Hyundai Motor on the condition that it finds a foreign partner within a reasonable time.

President Uhm further revealed that Hyundai will need to specify the time it will take to find a foreign partner, but its does not need to specify who the foreign partner will be. On this condition, Hyundai Motor will be determining the terms and conditions of the acquisition.

As for the possibility of Samsung Motors bidding for Daewoo Motor, Governor Uhm asserted that Samsung will not be able to meet the time schedule set by the creditors. Governor Uhm further added that the creditors are not up for a split sale of Daewoo Motor, but if bidding companies propose acceptable conditions, it is also possible.

Lee Na-Yeon larosa@donga.com