Hyundai Elevator, Schindler Dismiss Hostile M&A Rumors
By Jane Han
Staff Reporter
Flatly dismissing long-standing rumors of a hostile takeover of Hyundai Elevator, chairman of Schindler Group, the world's second-largest elevator maker, said Friday its stake-holding is friendly and for investment purposes only.
At a joint press conference, Alfred N. Schindler and Hyundai Group Chairwoman Hyun Jeong-eun brushed off the lately stemming ``groundless'' talks, while reinforcing a strategic alliance instead.
``Since the beginning, our stake holding was for investment, not for management,'' said Schindler. ``The rumors that Hyundai Elevator's management is being threatened and that a hostile M&A will take place are groundless.''
There have been recent speculations that the Swiss-based elevator maker has plans to buyout Hyundai's elevator business. Similar rumors also spurred last year when talks rose that Schindler is looking to increase its current 25.5 percent stake in Hyundai Elevator.
The rumors garnered more attention as Hyundai Elevator became the de factor holding company for Hyundai Group. After the former head of Hyundai Group Chung Mong-hun's suicide in 2003, his widow Hyun has taken control of the group's management.
Hyun also emphasized her intentions to wipe out the floating word of Hyundai's disposal of the elevator unit.
``The business will stay on course and we reaffirmed our will to maintain our mutually complementary strategic alliance, as well as our forward-looking partnership,'' said the chairwoman.
She added that the two companies agreed to make joint efforts to enhance corporate values, create synergy and expand the basis for a continued growth.
To materialize the partnership, Hyundai and Schindler have set up a working level cooperative team and co-firm name to be used on new products.
Asked whether Schindler will consider a hostile takeover or stake increase in the future, the chairman said there are no current plans to do so, but hinted any good businessman will not discuss such measures beforehand.
He added that Korea has a good macro environment for investment, citing high GDP growth rate, solid foreign reserves and a comparatively low inflation and unemployment rate.