The announcement comes after Michelin said last week its shareholding in Hankook rose from 6% to 8.9%, as part of a previous agreement with Hankook allowing Michelin to hold up to 10% of Hankook’s capital.

At the time, market talk was that Michelin was building up shares in the top South Korean tyre maker in possible preparation for a full takeover. That sent Hankook shares rallying by their daily limit on June 18 to their highest in more than four months.

However, analysts played down the prospect of Michelin bidding for Hankook because family and friendly shareholders hold a combined 35% in the firm.

A Hankook Tire spokesman said that it had not been informed of the stake increase by Michelin in advance, and did not know the reasons behind the additional share purchase. (Tire Review/Akron)