The deal led by Videocon Industries to acquire South
Korea''s Daewoo Electronics for $750mn has collapsed owing
to disagreements over price and other payment issues,
Daewoo''s creditors said on Thursday.
Asset Management Company, (Kamco) Daewoo''s biggest creditor,
and Woori Bank, which have led the sale, said creditors
rejected Videocon''s latest revised offer on May 7.
said the Videocon consortium asked for a big cut from
the price offered in the memorandum of understanding,
which could not be accepted. They said they were no longer
in talks with the Indian consumer electronics company
and were now focusing on restructuring Daewoo and returning
it to profit ahead of a potential sale to alternative
Woori official said: "The company''s situation is
deteriorating. We want to normalise its operations so
that it can fetch a fair price later."
said they would not block Videocon from joining any future
auction for the South Korean electronics company.
have run Daewoo since the conglomerate collapsed, with
$80bn of debt in 1999. They own 98 per cent of the company.
The company reported a net loss of Won183.5bn ($198m)
last year, compared with a Won 79.7bn loss in 2005.