Korean Air drops bid for Korea Aerospace Industries

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Korean Air has dropped out of the bidding for a stake in Korea Aerospace Industries (KAI), leaving the aircraft manufacturer's share sale again in uncertainty.

As the bidding deadline arrived on 17 December, only Hyundai Heavy Industries submitted a bid, confirms Korea Finance Corporation (KoFC), KAI's largest shareholder.

This means that the share sale will likely be scrapped because Korean laws require at least two bids to proceed with a sale.

"Korean Air decided not to submit a bid as KAI's current stock price is not proper," says a Korean Air spokesman. The flag carrier had submitted a first bid in September and also participated in the due diligence process.

Media reports in Korea say future proceedings regarding the KAI stake will be decided after talks with KAI's shareholders.

The first sale also fell through earlier this year when only Korean Air expressed interest.

KAI announced on 31 July that six of its shareholders are offering to sell a combined 41.75% stake in the company, 11.4% of which is held by KoFC.