AIG Ends Talks on Hyundai Companies
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American International Group Inc. pulled out of talks to buy three Hyundai financial companies, leaving Wilbur Ross and other U.S. investors without half the $833 million they plan to invest.
The New York-based insurance company pulled out because the government couldn’t agree to its demands to cover all hidden debt incurred by two of the companies before their sale, said Lee Woo Cheol, the government’s chief negotiator.
Ross said he hired Lehman Bros. Holdings Inc. to find other potential investors.
Shares of Hyundai Securities Co., Korea’s second-largest brokerage, plunged as AIG’s withdrawal suggested the acquisition may fail after 18 months of talks.
AIG closed up 89 cents at $79.61 on the New York Stock Exchange before the news was announced.
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