Reuters
May 28
eneral Motors Corp reached an agreement on Tuesday with the main creditor of South Korea Daewoo Motor to make an offer for assets and related businesses of the bankrupt carmaker.
``General Motors Corporation, Daewoo Motor Company and the Korea Development Bank (KDB), acting on behalf of Daewoo creditors, have reached an agreement to begin formal negotiations regarding the acquisition of passenger vehicle assets and related businesses of Daewoo Motor Company,'' the U.S. auto giant said in a joint statement with KDB.
``The parties will work to reach an agreement on a memorandum of understanding outlining the terms and conditions of the timetable and steps required for the completion of a transaction.''
Confirmation that GM wanted to begin formal takeover negotiations on Wednesday came after six months of evaluation and business plan development by the world's top automaker.
The news helped lift South Korean stock prices, pushing the Korea Composite Stock Price Index up 2.20 percent to a close of 632.05, its highest finish in more than eight months.
The joint statement said both sides were committed to proceeding with negotiations as rapidly as possible.
``The degree of GM alliance partner participation in the possible acquisition will be determined during the course of the negotiations,'' it said.
Both sides had agreed to keep the content of their discussions confidential during the negotiation process, it said.
Rhee Sung-kun, a KDB official in charge of selling Daewoo Motor, told reporters GM would submit a proposal to take over Daewoo Motor by Wednesday and that the formal talks would take place in a third country.
GM spokesman Rob Leggat said there was no set deadline for the talks to end.
``The main factor is that it (Daewoo Motor) has to be a viable business case,'' Leggat told Reuters.
GM DECLINES COMMENT ON PUPYONG
He declined to comment on whether the automaker's aging main plant at Pupyong, built in 1972 and employing around half of the carmaker's 15,700 domestic workers, and Ssangyong Motor would be included in GM's possible takeover of Daewoo's related businesses.
``We cannot comment on what will or will not be included in a proposal,'' he said.
Alan Perriton, GM's executive in charge of alliances, and Rudolph A. Schlais, the U.S. auto giant's top official in the Asia-Pacific region, are in Seoul on the Daewoo deal, he said.
Creditors have tried for more than a year to sell Daewoo, the nation's third-largest carmaker in terms of sales, to a foreign buyer, but progress has been slow.
Unlisted Daewoo, which employs around 15,700 workers in South Korea, held liabilities totaling 22.3 trillion won ($17.22 billion) versus 9.1 trillion won in assets as of the end of last year.
GM, along with partner Fiat, have so far remained tight-lipped about their negotiations with Daewoo's creditors, led by state-run KDB.
FIAT EYES TALKS
But on Tuesday, Italian automaker Fiat said it would decide on its participation in any purchase of Daewoo Motor on the strength of negotiations being carried out by GM.
``We continue to be in close contact with General Motors regarding our eventual participation in the possible purchase of Daewoo assets,'' a Fiat spokesman in Turin said. ``A decision on this will be taken on the basis of how the negotiations develop.''
Last year, a sale to Ford Motor Co looked likely after it submitted a non-binding offer of 7.7 trillion won. But the American automaker abruptly walked away from talks in September.
Daewoo has four plants in South Korea as well as 12 plants in 11 foreign countries, including Poland, India, Uzbekistan and the Ukraine.
Its total output capacity tops two million vehicles, though Daewoo sold less than half that last year.
Trying to avert what would have been South Korea's largest corporate collapse, KDB and other creditors stepped in to rescue Daewoo Motor and 11 other Daewoo Group units in August 1999 and have spent an estimated $2 billion to keep the automaker alive since. (US$ - 1295.0 won)
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Uzbekistan signs cooperation accords with Greece
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Uzbek radio
May 29
Greek delegation on European cooperation issues, headed by the Greek
foreign minister, Yeoryios Papandreou, was received at the Uzbek Foreign
Ministry in Tashkent on Tuesday. Before coming to Uzbekistan, they visited Beijing. The guests were greeted by Uzbek Foreign
Minister Abdulaziz Komilov at a reception.
The sides exchanged views on bilateral cooperation and friendly relations.
During the talks, an intergovernmental agreement on relations between the
customs authorities of the two countries, an accord on consular exchange
and communiques were signed. Bilateral cooperation agreements were also
signed.
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