SEOUL -- A plan by Hyundai Motor Co. and Siemens to jointly acquire a South Korean car navigation system maker for about $250 million has stalled over price, Hyundai Motor said on Tuesday.
It said in a statement that state-run Korea Deposit Insurance Corp. and creditor banks, which own a combined 43.2 percent of Hyundai Autonet Co. Ltd., were now demanding more than an initially proposed amount.
A consortium of the Korean automaker and the German engineering conglomerate was named as a preferred negotiator in March to buy the 43.2 percent stake for 260 billion won ($252 million).
"The KDIC has demanded to raise the price and Siemens announced it would give up the acquisition if the price went up," Hyundai Motor said in the statement, although it did not say the deal had definitely fallen apart.
Officials of the KDIC, which is the largest shareholder in Hyundai Autonet with 35 percent, were not immediately available for comment.
The stake up for sale is now valued at 268 billion won in terms of the company's market share price, slightly higher than the earlier proposed price.
In June, the antitrust body approved the proposed deal.