The saga for control of auto and banking conglomerate DRB-Hicom Bhd has taken a new twist after a tycoon rejected his rival's surprise concession to end the high-profile corporate wrangle, reports said on Tuesday.

Tycoon Syed Mokhtar Al Bukhary issued a statement late Monday saying he was prepared for a compromise involving the divestment of DRB-Hicom's lucrative auto business to a consortium led by his opponent SM Nasimuddin Amin.

However, Nasimuddin, who heads the Naza Group car business, immediately rejected the offer and said there was no such deal, The Star newspaper said.

The two tycoons are locked in a bid for a 15.8 percent interest in DRB-Hicom, which holds a 34 percent stake in Honda Malaysia, a 20 percent stake in banking group EON Capital, which in turn controls EON Bank, and has interests in property development and construction.

DRB-Hicom is also the sole distributor for General Motors' Chevrolet, Citroen and Audi cars.

A statement issued by Syed Mokhtar's firm Etika Strategi said he was ready to pay a proposed RM560 million for the stake, or RM3.60 a share, and then divest the auto arm to Naza Group to resolve the deadlock.

It said he had obtained the blessings of Prime Minister Abdullah Ahmad Badawi.

Good business plan

However, Nasimuddin, who had placed a lower bid, said his consortium had not "considered abandoning the purchase because it firmly believes in its business plan" to strengthen DRB-Hicom. Naza assembles and distributes vehicles under South Korea's Kia and Naza brands.

Abdullah, who is also finance minister, in a statement on Tuesday said he had received Syed Mokhtar's compromise proposal but clarified the government had not given its blessing nor made a decision on the issue.

"The government's interest is to ensure that the decision made by the vendors of the 15.8 percent stake and the consequent events are in the best interests of all stakeholders of DRB-Hicom, including the minority shareholders," the premier said.