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Renault mulls Samsung bid
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January 5, 2000: 4:19 a.m. ET
French firm and partner Nissan in talks with bankrupt Korean automaker
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LONDON (CNNfn) - Renault and Nissan have confirmed they are in exclusive talks to purchase bankrupt Korean auto manufacturer Samsung Motors, in a deal that could be worth $2 billion.
Samsung Motors is saddled with debts estimated at $5 billion, according to the Wall Street Journal Wednesday, but the newspaper said Renault doesn't want to take on that debt burden.
Renault owns a 37 percent stake in Nissan, and the Japanese firm was instrumental in the giant Samsung conglomerate setting up its auto business in 1995. Samsung Motors' factory in Pusan was set up with technical assistance from Nissan in 1998. Samsung Motors was placed in court receivership last week.
The Korean financial crisis has presented a number of opportunities for international manufacturers to make headway in the previously closed Korean auto market. General Motors (GM) is bidding for Daewoo Motors, while Ford (F) is considering a rival offer for the same firm.
Although Samsung Motors operates on a much smaller scale - it has produced only 48,000 vehicles and had only one model - analysts said it could provide another interesting foothold in Asia for Renault following its investment in Nissan last year.
The Journal reported that Renault and Nissan's interest is in the Pusan factory, the company's technical center and its Korean dealer network. 
-- from staff and wire reports
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