GM Daewoo Executive: No Offer From KDB To Buy Additional Stake
May 01 2009 - 2:00AM
Dow Jones News
GM Daewoo Auto & Technology Co. hasn't received an offer
from Korea Development Bank to buy an additional stake in the South
Korean unit of General Motors Corp. (GM), a company executive said
Friday.
"No such talks have been held with KDB," GM Asia Pacific
President Nick Reilly said in a press briefing held in downtown
Seoul.
He made the comment in response to local media reports that the
state-run bank is considering buying an additional stake in GM
Daewoo to help the cash-strapped company.
Reilly also said the currency-forward contracts extended by
three months by eight South Korean banks, including KDB, are worth
$500 million.
But "the remaining 50% of currency forwards (coming due in
May-June) will be paid on time...from next week as planned," said
Reilly, who is also a GM group vice president.
If GM declares bankruptcy, GM companies in Asia-Pacific region
will remain part of the newly-restructured GM, he said.
KDB is GM Daewoo's second-largest shareholder with a 28% stake.
The rest of the South Korean carmaker is owned by GM and
GM-affiliated companies.
-By Kyong-Ae Choi, Dow Jones Newswires; 822-2198-2230;
kanga.kong@dowjones.com