DaimlerChrysler Converts 10.4 Percent Stake in Hyundai Into Global Depositary Receipts

SEOUL, South Korea May 4, 2004; The AP reported that DaimlerChrysler AG has converted its entire 10.4 percent stake in South Korea's Hyundai Motor Co. into global depositary receipts, a Hyundai official said Tuesday.

The official said DaimlerChrysler changed all of its 22.9 million Hyundai Motor shares into GDRs through Citibank. He didn't give further details.

The conversion comes amid speculation that the German carmaker is about to sell its entire stake in Hyundai Motor, South Korea's No. 1 automaker. Converting the shares into GDRs makes it easier for DaimlerChrysler to sell its Hyundai shares, South Korean news media reported.

National news agency Yonhap said DaimlerChrysler was expected to sell the GDRs to overseas investors within a month.

Relations between the two companies have soured over the German automaker's plans to build Mercedes-Benz cars in China in partnership with Beijing Automotive Industry Holding Co.

A DaimlerChrysler spokesman declined to comment on the conversion of its shares in Hyundai.

Hyundai Motor said last week it was in talks with DaimlerChrysler to pare down their relationship to a more "limited" partnership.

DaimlerChrysler acquired its 10.4 percent stake in Hyundai in 2000.