Hyundai Securities says its board has approved a stake sale to American International Group and partners for seven thousand won. That's roughly five dollars and five cents ... one fifth lower than an earlier request.
The approval removes a key hurdle for the biggest foreign investment deal in South Korea.
By accepting AIG's key demand after prolonged talks, Hyundai moved closer to securing a one point one trillion won investment.
The deal gives the U.S. insurance giant ... control of Korea's second largest brokerage and its two ailing financial affiliates.
But a Hyundai union said it would file a complaint with a local court to block the share sale to prevent management from wasting the money on `non-viable' units.
The U.S. investors plan to pour 400 billion won into Hyundai Securities and 700 billion won into cash-strapped Hyundai Investment Trust and Securities as well as Hyundai Investment Trust and Management.
A Hyundai spokeswoman said that Hyundai Securities will then use the 400 billion won to help recapitalize the cash-strapped Hyundai Investment Trust and Securities.