Videocon consortium to make revised offer for Daewoo

Mumbai: The Videocon-led consortium has started negotiations with a revised offer in a bid to resuscitate the $730 million Daewoo acquisition deal, which fell through after creditors to the ailing Korean electronics giant refused a demand for price cut.

The consortium comprising Videocon and US equity firm Ripplewood has reduced the demand for price cut to 10 per cent of deal value from the earlier 13 per cent, sources said.

Reports said a majority of the 40 creditors to Daewoo, led by Woori Bank, said they were not satisfied with the final terms offered by the Videocon-led consortium and rejected the demand for a price cut.

Videocon officials refuse to comment, saying they were bound by non-disclosure agreement and could not verify or comment on news coming out from Seoul. Sources, however, said negotiations were on after the renewed offer.

The Videocon-led consortium, which offered to pay 700 billion won (about $730 million dollars) for taking over the sick Korean company, was shortlisted from a number of bidders in October last year.