Korean Air, Hyundai Heavy compete to buy Korea Aerospace

Korea's top air carrier Korean Air Lines Co. and Hyundai Heavy Industries Co. on Thursday submitted preliminary bids for a 41.75 percent stake in aircraft manufacturer Korea Aerospace Industries Ltd. (KAI), a state-run lender said.

Korea Finance Corp. (KoFC), which is in charge of the sale as the biggest shareholder of KAI with a 26.41 percent interest, said it will hold consultations with other major shareholders -- Hyundai Motor Co., precision machinery maker Samsung Techwin Co., and Doosan Group -- to evaluate the preliminary bids.

KoFC said it will select a qualified bidder next week, adding that it plans to wrap up the sale by the end of this year.

KAI's 41.75 percent stake is valued at 989 billion won (US$885 million) based on Thursday's closing share price of 24,300 won.

The first preliminary bid fell through last month due to a lack of competition, as required by law. Korean Air, an affiliate of South Korea's 10th-biggest business group Hanjin, was the sole bidder in the first round of bidding. (Yonhap)