Mario777
01-16-2006, 12:18 PM
U.S. automaker General Motors Corp. and South Korea's Daewoo Motor Co.'s creditors have confirmed they will begin formal negotiations on GM acquisition of Daewoo's passenger car assets and related businesses, Daewoo's main creditor, Korea Development Bank, said Tuesday in a news release.
''Both sides are committed to proceeding with negotiations as rapidly as possible,'' the release said.
The release also said both sides are ''hopeful for a successful conclusion and have agreed to keep the content of their discussions confidential during the negotiation process.''
Earlier Tuesday, Kang Un Tae of the ruling Millennium Democratic Party said GM and Daewoo would begin acquisition talks from June 4 in an undisclosed third country. leaders.
Kang said the talks will be in a third country because it is better to keep the negotiation process confidential.
A GM delegation already in South Korea is expected to submit a provisional takeover proposal Wednesday at the earliest.
The U.S. automaker submitted a letter of intent to Daewoo creditors in October last year after Ford Motor Co. abruptly withdrew a bid made in September.
GM has not yet submitted a takeover proposal for Daewoo because it wanted a closer look at the automaker's financial position before making any offers.
Analysts added GM's upcoming proposal is unlikely to specify a takeover price or the scope of Daewoo operations to be acquired, raising fear the negotiations may take several more months.
Apart from the price, the hottest issue has been whether GM will include Daewoo's dilapidated Bupyeong plant, west of Seoul, in its plans or simply try to take over only Daewoo's most attractive assets, including its Kunsan plant in North Cholla Province.
During the 1997-1998 Asian financial crisis, Daewoo collapsed under debts of about $15 billion. In November last year, it was put under court receivership, a process that froze its liabilities.
Get More Information Here (http://www.findarticles.com/p/articles/mi_m0WDP/is_2001_June_4/ai_75331208)
''Both sides are committed to proceeding with negotiations as rapidly as possible,'' the release said.
The release also said both sides are ''hopeful for a successful conclusion and have agreed to keep the content of their discussions confidential during the negotiation process.''
Earlier Tuesday, Kang Un Tae of the ruling Millennium Democratic Party said GM and Daewoo would begin acquisition talks from June 4 in an undisclosed third country. leaders.
Kang said the talks will be in a third country because it is better to keep the negotiation process confidential.
A GM delegation already in South Korea is expected to submit a provisional takeover proposal Wednesday at the earliest.
The U.S. automaker submitted a letter of intent to Daewoo creditors in October last year after Ford Motor Co. abruptly withdrew a bid made in September.
GM has not yet submitted a takeover proposal for Daewoo because it wanted a closer look at the automaker's financial position before making any offers.
Analysts added GM's upcoming proposal is unlikely to specify a takeover price or the scope of Daewoo operations to be acquired, raising fear the negotiations may take several more months.
Apart from the price, the hottest issue has been whether GM will include Daewoo's dilapidated Bupyeong plant, west of Seoul, in its plans or simply try to take over only Daewoo's most attractive assets, including its Kunsan plant in North Cholla Province.
During the 1997-1998 Asian financial crisis, Daewoo collapsed under debts of about $15 billion. In November last year, it was put under court receivership, a process that froze its liabilities.
Get More Information Here (http://www.findarticles.com/p/articles/mi_m0WDP/is_2001_June_4/ai_75331208)