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News > Deals
GM starts Daewoo talks
May 30, 2001: 2:22 p.m. ET

World's largest automaker calls reports of $775.7M Daewoo bid "speculative"
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NEW YORK (CNNfn) - General Motors on Wednesday submitted a proposal to buy Daewoo Motor Co., a move that formally starts the negotiation process.

Detroit-based GM (GM: down $0.93 to $56.40, Research, Estimates) declined to comment on press reports that the world's largest automaker had bid $775.7 million for Daewoo Motor. GM is also said to assume $17.3 billion of Daewoo liabilities, while offering stakes to creditors in exchange for debt write-off.

"The numeric reports are highly speculative," a GM spokeswoman said.

Talks between the parties are convening outside Korea in an undisclosed, offshore location, GM spokesman Henry Wong added.

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GM confirmed Tuesday that it would begin formal talks on buying the assets of bankrupt Daewoo Motor. GM began discussions Wednesday with Korea Development Bank, which is acting on behalf of Daewoo.

The talks follow more than six months of evaluation and business plan development.

GM also declined Wednesday to specify what Daewoo assets it was interested in buying. Daewoo Group, Korea's second-largest conglomerate, is selling 11 of its businesses in a bid to pay off creditors. Daewoo Motor produced 945,000 vehicles in 1999, selling a third of them in its domestic market, and has the capacity to build 2 million vehicles a year.  graphic

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GM in talks to buy Daewoo - May 29, 2001





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.