Videocon negotiates afresh with Daewoo creditors

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Videocon Industries -led consortium is preparing to start fresh negotiations with the creditors of Daewoo Electronics for acquiring the Korean company, after the deal between the two which had concluded in October last year, fell through over subsequent differences on the negotiated price.

The October deal came apart after the creditors of Daewoo rejected Videocon's proposal for a 13% discount on the negotiated acquisition price of about $750 million (about Rs 3,200 crore).

With both the sides not closing the window for fresh negotiations, sources tracking the deal say that the development may not signal the end of Videocon's attempts at taking over the debt-ridden Korean electronics firm.

Videocon, in partnership with a fund headed by Ripplewood Holdings, still continues to be the most likely buyer, one of Daewoo's creditors is reported to have said in a statement.

It would depend on how much ground the two sides are willing to yield on the price.

Foreign wire agencies quoted Woori Bank, one of Daewoo's creditors, as saying that "October's preliminary agreement to sell Daewoo to Videocon and its bidding partner is annulled."

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