The bid to acquire Daewoo electronics by Videocon-led consortium, which was about to die seems to have breathed life again. Videocon International had insisted on a 15 per cent cut on the original purchase bid of $730 million, has decided to settle for a less than 10 per cent cut. The Koreans were not very keen on the Videocon bid, due to serious concerns of technology leaks and also over the transfer of technology to Korea’s potential rival, India.
Daewoo the No 3 South Korean electronics major has global sales of approximately $2.5 billion. Videocon is working out to settle for the best possible business terms for both parties, instead of losing the deal. It is believed that if both parties come to an agreement, the final deal may be signed in about a month and a half. The deal was earlier supposed to be signed December last year.