SEOUL: An unidentified Saudi conglomerate plans to submit its bid to buy a controlling stake in Hyundai Engineering & Construction (000720.KS), a local newspaper reported on Friday. “After reviewing several circumstances, it has decided to independently submit a letter of intent,” JoongAng Ilbo quoted an agent for the Saudi firm as saying. An official at one of the creditors of Hyundai Engineering said they had not received a bid from the Saudi company. The creditors, which include the Korea Exchange Bank, had put up their 35 percent stake in the builder on sale. The shares are worth $2.56 billion. Preliminary bids are due on Friday at 0600 GMT. Hyundai Motor Group, the world's fifth-largest automaker, has announced its bid for the country's biggest builder, stirring up a contentious battle by rival members of the Hyundai family. “We have so far received an LOI (letter of intent) from Hyundai Motor Group. We hope more contenders will participate,” the official at one of the creditors told Reuters on condition of anonymity. Hyundai Group, the department store, shipping and tourism group is seeking to regain control of Hyundai E&C, which fell into the hands of creditors in 2001 because of financial woes. The JoongAng Ilbo said Hyundai Group has asked Saudi Arabia's companies to be its financial investor. Two groups split from what was South Korea's top conglomerate are squaring off in a bid for $2.5 billion-plus controlling stake in the country's biggest builder, Hyundai Engineering and Construction. Korea Exchange Bank, the biggest shareholder of Hyundai E&C, said Friday it had received letters of intent from Hyundai Motor Group and a consortium led by Hyundai Group, the parent of Hyundai Merchant Marines. The groups are headed by feuding members of the founding family of the original Hyundai group which was torn apart by family infighting. In the bid for Hyundai E&C Hyun Jeong-eun, a former housewife and the head of the present Hyundai Group, will go head to head with Chung Mong-koo, the Hyundai founder's oldest surviving son, chairman of Hyundai Motor and the brother of Hyun's deceased husband. Analysts said Hyundai Motor with its deep pockets was in a better position to win the race for Hyundai E&C and that its acquisition would provide the builder with a strong support. “If Hyundai Motor wins, Hyundai Engineering will have a new cash-rich owner that can provide synergies, such as assertive investments and stable supply of materials for construction,” said Kang Seung-min, an analyst at Seoul-based NH Investment & Securities. Hyundai Motor, the world's fifth-largest auto maker along with its affiliate, had a debt-to-equity ratio of just 55.1 percent as of June, less than one-fifth of the 300 percent ratio for Hyundai Merchant Marine, company data shows. Hyundai Group has teamed up with Germany's M+W Group, a German engineering and project management firm, for its bid. Reuters __
