Videocon makes fresh bid for Daewoo

The Videocon Industries-led consortium has submitted a revised bid to the creditors of Daewoo Electronics for buying their stake in the South Korean electronics major.

Sources in Videocon said they were confident of picking up a 97.5 per cent stake in Daewoo Electronics. "The creditors are keen to hand over Daewoo's assets to a company that is already in the durables business rather than opt for another equity fund," sources said.

The only other strong contender for Daewoo's assets is South Korean equity fund MBK Partners, which was set up by former employees of US fund Carlyle Group.

When contacted, Venugopal Dhoot, chairman, Videocon Industries, declined comment.

Last month, the Videocon-led consortium had lost its preferred bidder status after the creditors of the ailing company rejected its proposal to acquire Daewoo for a lower price following due diligence.

The Videocon consortium had asked for a 13 per cent discount on the initial bidding price of $752 million to acquire a 97.5 per cent stake in the company.

Company sources, however, refused to reveal the financial details of the revised bid. "The results are expected in a month," they said.