The creditors of Daewoo Electronics, led by Woori Bank and Korea Asset Management Corp. (Kamco), rejected the Videocon offer to buy Daewoo Electronics. The deal was scrapped mainly due to differences in pricing.
In October 2006, the Videocon-led consortium agreed to buy 97.6% of Daewoo for 700 bn won ($749 mn; €573 mn), but later demanded a 13% cut on the agreed price. Daewoo Electronics, South Korea’s third-largest electronics goods maker by sales has been under a creditor-led debt-rescheduling program since 2000 after collapsing under huge debts, amounting to around $80 bn.
Read The Economic Times and Business Standard articles.
Related Posts:
Videocon’s Daewoo acquisition in jeopardy
Videocon may agree to a less than 10% cut in bid price for Daewoo Electronics; budges from earlier demand of a 15% cut
Dealcurry: Capital Markets, Investment Banking, Private Equity 