Published : Aug. 30, 2011 - 19:29
Hyundai Group said Tuesday that it has decided to withdraw its lawsuit against Hyundai Motor Group in a sign of a thaw in their relations, long sour since an acquisition battle for Hyundai Engineering & Construction Co.
In November, Hyundai Group filed a libel suit against Hyundai Motor for publishing rumors that the shipping-focused company could not afford to take over the builder after losing its preferred bidder status to the auto giant. Creditors led by the Korea Exchange Bank eventually sold Hyundai E&C for 4.96 trillion won ($4.63 billion).
The name and logo of Hyundai Group is seen on the gate window at their headquarters in Seoul. (Yonhap News)
The months-long feud between rival relatives drew much attention as the three companies were once part of the Hyundai conglomerate, founded by Chung Ju-yung. They fell apart following his death in 2001.
Hyundai Group said the decision was made for the “family’s reconciliation and mutual development” ahead of the wedding of one of Chung’s granddaughters, Chung Ji-yi. Hyundai Motor Chairman Chung Mong-koo is expected to attend the ceremony scheduled for Saturday.
Chung Ji-yi is an executive vice president of Hyundai U&I, Hyundai Group’s information technology services unit, and the eldest daughter of Hyundai Group chairwoman Hyun Jeong-eun. Hyun is daughter-in-law of Chung Ju-yung and sister-in-law of Chung Mong-koo.
But Hyundai Group noted that it will still proceed with a separate lawsuit against the creditors, which aims to rescind the decision to deprive the company of the right to negotiate primarily with Hyundai E&C last year.
Industry watchers say the family members may hold talks to sell shares in Hyundai Merchant Marine, which is controlled by Hyundai E&C, to Hyundai Group. The shipping firm has played a pivotal role in the dispute because Hyundai Group could be exposed to hostile takeover bids without the stake.
By Shin Hyon-hee (heeshin@heraldcorp.com)