General Motors woos troubled Daewoo

General Motors will make an official proposal today to buy bankrupt Daewoo Motor, according to a senior official of South Korea…

General Motors will make an official proposal today to buy bankrupt Daewoo Motor, according to a senior official of South Korea's ruling party.

"GM will present a proposal tomorrow to take over Daewoo Motor, and the talks to sell Daewoo Motor will continue for four days," Mr Kang Wun-Tae, top policy coordinator of the ruling Millennium Democratic Party said.

The talks will take place in an unspecified foreign country, Mr Kang told a meeting of key party officials, quoted by a party spokesman.

Yonhap news agency said the talks would open on June 4th, with representatives from GM, the government and Daewoo Motor creditor banks taking part.

READ MORE

GM formed a consortium with Fiat of Italy to take over Daewoo after Ford abruptly pulled out of a deal worth $6.9 billion last September.

But the long delay in GM's response has caused widespread scepticism as to whether the deal will go through.

Daewoo Motor had $17 billion dollar in total liabilities at the end of last year.

AFP