Videocon-led bid for Daewoo fizzles out
The planned sale of South Korean major has been scrapped mainly due to differences in pricing.
By Agencies |
SEOUL: The planned sale of South Korea's Daewoo Electronics Corp. to a consortium led by India's Videocon
Industries Ltd. has been scrapped mainly due to differences in pricing, a news report said Friday.
Industries Ltd. has been scrapped mainly due to differences in pricing, a news report said Friday.
``We gave Videocon the final word that talks are ended,'' an official at Woori Bank, one of Daewoo Electronics' creditor banks, told media on condition of anonymity.
Creditors will now focus on restructuring Daewoo Electronics and returning it to profit ahead of a potential sale to alternative buyers, he said.
Officials at Videocon weren't immediately available for comment. Creditors, including Woori Bank and state-run Korea Asset Management Corp., who collectively hold 97.6 percent of Daewoo Electronics, have been seeking to sell all of the stake since November 2005.
In January, the creditors rejected a bid from a consortium led by Videocon and American private equity house Ripplewood Holdings LLC, to buy the stake for 700 billion won (US$750 million; euro555 million).
The Indian consortium later filed a revised bid. Daewoo Electronics, South Korea's third-largest electronics goods
maker by sales, has been under a creditor-led debt-rescheduling program since 2000 after amassing huge debts.
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