Hynix shares drop on block sale worries

SEOUL, Nov 17 - Hynix Semiconductor dropped more than 5 percent on Tuesday after its shareholders said late Monday they planned to seek a public auction for a controlling stake in the firm and could turn to a block sale if no buyer appeared.

"As auctions have failed in the past, the chances are getting stronger for a block sale," said John Park, an analyst at Daishin Securities. "Investors are worried not only about the short-term overhang from the sale in the market but also for Hynix's long-term outlook as a company without a strategic owner."

At 0035 GMT, Hynix <000660.KS> traded down 5.33 percent at 18,650 won, lagging the wider market's <.KS11> 0.16 percent gain.