US-German auto group DaimlerChrysler has converted its holding in Hyundai Motor into global depository receipts (GDRs) as a first step towards the breakup of its ties with the South Korean partner, reports said Tuesday.

The conversion of DaimlerChrysler's 10.44 percent stake worth 835 million euros (one billion dollars) into GDRs was arranged by Citibank, Yonhap news agency said.

Hyundai officials refused to comment but reaffirmed the company was ready to scrap ties with DaimlerChrysler even as it seeks to become one of the world's top five auto firms by 2010.

"(There is) no comment on the reported GDR sale. We would not be taken by surprise even if our partnership with DaimlerChrysler collapses," a Hyundai official said.

GDRs, documents indicating ownership of a commodity stored in a global bank depository, have been favored as safe tools to sell shares.