KKR proposes to buy S.Korea Mando for $1.3 billion: report

SEOUL (Reuters) - U.S. private equity firm Kohlberg Kravis Roberts (KKR) KKR.UL has proposed to buy South Korean car part maker Mando Corp for $1.3 billion after years of stalled talks, a local newspaper reported.

Korea Economic Daily said in its early Friday edition that KKR joined the race for Mando, offering 1.2 trillion won ($1.28 billion) or more for the maker of brake and steering systems.

KKR may form a consortium with other investors to buy Mando, the daily said, citing an unidentified source.

Private equity fund CCMP and an inhouse investment division of Swiss bank UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) together bought Mando in 1999 via a company known as Sun Sage BV. They put up Mondo for sale in 2005.

A Mando spokesman could not confirm the bid by KKR.

"There has been no request for due diligence from KKR," said the spokesman. "But we are aware that several foreign companies such as TRW (TRW.N: Quote, Profile, Research, Stock Buzz), Continental (CONG.DE: Quote, Profile, Research, Stock Buzz) and Bosch ROBG.UL have expressed interest."

Hyundai Motor Co (005380.KS: Quote, Profile, Research, Stock Buzz), South Korea's biggest auto maker, had been considered the most likely buyer but talks with Hyundai ended due to differences over the price.

Mando went bankrupt in 1997 after the Asia financial crisis.

($1=938.6 Won)

(Reporting by Rhee So-eui; Editing by Ben Tan)