PARIS (June 27, 2008) — Michelin has increased its interest in South Korea's Hankook Tire Co. Ltd. to 8.9 percent from 6.3 percent.
Michelin, which disclosed in 2003 an agreement with Hankook to purchase up to a 10-percent stake in the South Korean tire maker, boosted its shareholding June 18 from 6.3 percent.
Michelin didn't disclose how many shares it bought or at what price. Hankook shares closed at $15.60 on June 18, when more than 2.2 million shares were traded, indicating a transaction value of more than $30 million.
Michelin agreed in 2003 to buy up to a 10-percent interest in Hankook, and initially acquired a 5-percent stake in the tire maker. It spent $26 million to raise its share to 6.33 percent in March 2006.
In explaining its rationale in 2003 for the move, Michelin said it wanted to involve Hankook in its global manufacturing, distribution and research network.