Chinese firm plans to bid for Ssangyong Motor

SEOUL, Nov 17 (AFP) - China's Blue Star New Chemical plans to join a takeover bid for South Kora's ailing Ssangyong Motor, which specializes in sport utility and recreational vehicles, reports said Monday.

The Korea Economic Daily quoted an unidentified official at the Chinese firm as saying: "We have decided to buy Ssangyong and will send our task force team there for talks."

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Ssangyong Motor Co., producing mostly jeeps and a luxury sedan, has been under a creditor-led restructuring program while looking for buyers.

Creditors of Ssangyong Motor are seeking to name a preferred bidder early next month for their combined 55.4 percent stake in the automobile company.

Independent confirmation of the Chinese firm's reported bid for Ssangyong Motor was not immediately available.

"We are not commenting on the ongoing bidding process," said a senior official from Chohung Bank, a key creditor of Ssangyong.

Ssangyong officials said the auto firm was completely left out of the bidding process.

Eight domestic and foreign firms are competing to take over Ssangyong, Yonhap news agency said, adding creditors plan to pick a priority negotiator in early December.

Ssangyong, controlled by creditors, increased sales 1.1 percent from a year ago to 1.72 trillion won in the first half, with its net profit soaring 154.3 percent to 306.2 billion won.

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