GM submitted a bid for Daewoo on Wednesday. It now begins formal negotiations to buy the bankrupt automaker. A GM spokesman confirmed the start of talks with creditors. But he declined to reveal details of the bid. The Detroit-based company has been evaluating its offer since it started due diligence last October.
Analysts expect it to get a bargain price.
Talks now move to a third country. GM's bid has been the subject of intense scrutiny in South Korea, and the parties hope to avoid distractions. GM plans to swap stock for the rest of the debt, offering Daewoo's creditors between 33 and 49 percent of the company, the paper said, quoting a source close to the talks. Korean auto stocks saw good gains Wednesday on optimism about GM's bid. Daewoo Motor Sales, the company's sales arm, rose 6.6 percent to close at 4,380 won.