Failed Hankook takeover a lesson for companies

The family feud at the tyre giant over management control has been ongoing for years, but MBK’s involvement added a new twist to the sibling rivalry. — The Korea Herald

SEOUL: The attempt by homegrown private equity firm MBK Partners to acquire a stake in Hankook & Co – the holding company behind South Korean tyre giant Hankook Tire & Technology – has failed, but it has served as a wake-up call for South Korean conglomerates with poor corporate governance.

MBK’s move in the last few weeks for a hostile takeover of South Korea’s No. 1 tyre company and its demand for the improvement of Hankook’s governance structure raised some eyebrows, especially at large companies, as such moves have been typically made by foreign hedge funds, not local private equity funds (PEFs).