Shanghai firm eyes Ssangyong

Shanghai firm eyes Ssangyong

SEOUL: China's Shanghai Automotive Industry Corp and another
unidentified consortium are the top two candidates to take over
South Korea's troubled Ssangyong Motor Co., Ssangyong creditors
said on Friday.

A labor union leader at Ssangyong Motor, meanwhile, said he
had been told by a senior Ssangyong Motor official that Shanghai
Automotive is the strongest candidate to buy the automaker.

The labor union said it would launch a partial strike on
Monday and walk out for up to six hours every day throughout next
week to press its demand for wage hikes and say in the company's
decisions affecting workers' job security.

"It is true that Shanghai Automotive is one of the two
strongest candidates," said an official of Chohung Bank, the
company's main creditory.

"We don't know when we will be able to reach a deal," he said.

He rejected a local news report as groundless that Chohung and
other creditors of the bankrupt automaker would announce next
week the selection of Shanghai as the preferred bidder to acquire
Ssangyong.

The Chosun daily, citing an unidenfied banking official, said
that the creditors would make an announcement next week on the
selection of Shanghai Automotive as the preferred bidder.

It said Shanghai Automotive's bid was lower than that
previously proposed by China National Bluestar Corp.

In March, China Bluestar withdrew its offer for Ssangyong
Motor due to its failure to narrow differences with the
carmaker's creditors over its valuation.

Creditors hold a controlling 53 percent stake in Ssangyong.
--AFP