From Reuters

French tire maker Michelin has raised its stake in Hankook Tire Co. to nearly 10 percent through stock market purchases, the South Korean company said on Friday.

The announcement comes after Michelin announced the week prior that its shareholding in Hankook rose from 6 percent to 8.9 percent, as part of a previous agreement with Hankook allowing Michelin to hold up to 10 percent of Hankook’s capital.

At the time, market talk was that Michelin was building up shares in the top South Korean tire 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 percent 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.