SOUTH KOREA: Ssangyong creditors apparently not happy with takeover bid
Ssangyong Motor creditors appear none too happy with the final bid submitted on Monday by China National Bluestar Group (also known as Lanxing Group) for its planned takeover of the SUV maker, according to AutoAsia Online.
The report said the banks have urged Bluestar to clarify its final bid price and to submit a letter of support from the Chinese government - in short, the bid document submitted on March 15 has been rejected.
"Lanxing expressed an ambiguous position on its bid price, stipulating a wide difference between the maximum and minimum, causing confusion among creditors," a creditor spokesperson reportedly said, adding that the banks will give the Chinese side until March 30 to respond.
AutoAsia noted there was consternation in Beijing at Bluestar's bid for Ssangyong Motor because the Chinese government wants to consolidate the structure of the automotive industry, not encourage new entrants.
The influential State Development and Reform Commission is known to have supported instead an approach to Ssangyong creditors made by Shanghai Automotive, the report added.