Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 926 Sat. January 06, 2007  
   
Business


India's Videocon makes new offer to buy Daewoo


India's biggest electronics firm Videocon Industries Ltd has made a fresh offer to buy South Korean giant Daewoo Electronics after differences arose over pricing, a news report said Friday.

A memorandum of understanding was signed in October to sell Daewoo Electronics for 730 million dollars to a consortium made up of Videocon and Ripplewood Holdings, a US private equity fund.

But Daewoo's creditors refused this month to agree to Videocon's later demand for a 13 percent cut in the 730 million dollar original price.

Videocon is now willing to settle for the "best possible business terms", The Economic Times financial daily quoted unnamed sources as saying.

The report said the Indian company was willing to agree to "less than a 10 percent cut" in the price of the Korean firm.

A Videocon official declined comment.

The consortium has started fresh talks with the new offer, the Press Trust of India reported.

If the transaction goes ahead, it would mark Videocon's third big acquisition in under two years.

Videcon makes televisions, picture tubes and home appliances while Daewoo Electronics produces a range of goods including TVs, air-conditioners and washing machines.