SEOUL (Reuters) -- The six groups bidding for Ssangyong Motor Co., including Renault-Nissan, have won more time to prepare their bids. The final bid deadline for the troubled Korean automaker, which is worth up to $500 million, has been extended by three weeks, the firm said on Tuesday. "The decision is to reflect bidding participants' demand for more time for due diligence and detailed documentation including funding plans," Ssangyong said in a statement.Sale advisers for the SUV specialist had planned to receive binding bid proposals by July 20 and six groups including Renault-Nissan and India's top utility vehicle maker Mahindra & Mahindra Ltd. are reviewing Ssangyong's books.A Seoul court kicked off the sale process for cash-strapped Ssangyong in May and had planned to pick a preferred buyer during August."The news has prompted concerns...whether the bidding process is going smoothly," said Lee Sang-hyun, an analyst at NH Investment & Securities.Samjong KPMG and Macquarie Group, which are handling the sale, have now asked potential bidders to submit their binding final proposal by Aug. 10, Ssangyong said.The participation of high profile international firms in the auction was seen as a potential threat to the dominance enjoyed by Korea's top automaker Hyundai Motor and its affiliate Kia Motors, not only on their home turf but also in export markets.The auction also comes as Ssangyong, Korea's smallest automaker, is on a firm recovery path since it was put under the court-led restructuring plan in early 2009, hammered by one of the industry's worst downturns.The maker of Rexton and Kyron SUVs and Chairman sedan reported a 34-fold rise in monthly sales to a record last month, powered by domestic consumption recovery and strong export growth.
Automotive News - July 13, 2010 06:01 CET
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