Hyundai Left as Sole Bidder for Mando

As I thought would happen...

Hyundai Motor Co has been left as the sole bidder for South Korean auto parts maker, Mando Corp. as Siemens and TRW Automotive backed down from talks to buy the unlisted firm, a Mando official said on Saturday.

More than 10 local and foreign companies had initially showed interest in acquiring Mando, which makes brake and steering systems, in a deal reportedly worth up to $2 billion.

But the bidders were cut to three -- Hyundai, German engineering group Siemens and Michigan-based TRW Automotive Holdings Corp, according to Mando.

Unlisted Mando was put up for sale by its majority shareholder -- a consortium of buyout firms JP Morgan Partners and Affinity Equity Partners -- which paid $446 million in 2000 for a 72.3 per cent stake in the Korean firm.

If Hyundai acquires Mando, the Hyundai-Kia Auto Group moves one step closer to a fully integrated manufacturing organization, The Group already owns a number of parts affiliates including Mobis and Bontec.