Hyundai Engineering Falls on Concerns of Sale Delay
Tuesday, January 08, 2008
Hyundai Engineering & Construction Co., fell the most in almost five months in Seoul on concern Korea Development Bank may delay selling its stock in the company, holding up expansion plans, according to Bloomberg.com.
Hyundai Engineering declined 7.5 percent to close at 89,500 in Seoul. Daewoo Shipbuilding & Engineering Co., also part-owned by state-owned Korea Development Bank, fell 5.2 percent to 44,550 won, the biggest drop in more than a month.
The delay may stem efforts by Hyundai Engineering and Daewoo Shipbuilding to win orders from the global surge in demand for power plants, refineries and ships. Korea Development Bank and other South Korean creditors had planned to start selling their stakes in the two companies last year.
Korea Development Bank, together with state-owned Korea Asset, own 50.4 percent of Daewoo Shipbuilding. Korea Exchange Bank and other creditors own a combined 57 percent of Hyundai Engineering.