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GM starts Daewoo talks
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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.
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. 
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