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GM in talks to buy Daewoo
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May 29, 2001: 11:56 a.m. ET
Discussions with bankrupt Korean carmaker follow 6 months of evaluation
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NEW YORK (CNNfn) - General Motors Corp. agreed Tuesday to begin formal talks on buying the assets of bankrupt Daewoo Motor Co.
Detroit-based GM (GM: up $0.25 to $56.50, Research, Estimates) will begin negotiations Wednesday with Korea Development Bank, which is acting on behalf of Daewoo, a spokesman said.
The discussions follow more than six months of evaluation and business plan development. Both sides are committed to proceeding with talks as rapidly as possible, the companies said.
The sale includes Daewoo's passenger vehicle business, but the companies declined to disclose what plants or other assets would be included. Financial terms were not available.
"We will sit down together and sketch out the parameters for discussion and work towards a memo of understanding," GM spokesman Henry Wong said. "Hopefully this will get done quickly."
GM is seeking to rekindle a 15-year relationship with Daewoo that ended in 1992.
Daewoo Motor is one of the more attractive assets being unloaded by its parent, Daewoo Group.
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. 
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