It looks like that Videocon will not give up on Daewoo Electronics so easily. The Economic Times reports that Videocon Industries has got UBS and Citigroup, its investment bankers, to put forth a completely separate bid for troubled consumer durables maker Daewoo Electronics after recently losing its ‘preferred bidder’ status. The company will now compete on a non-exclusive basis with MBK Partners, a South Korea-based private equity fund which was selected as the secondary bidder for the deal.
The promoters of Videocon, the Dhoots, are visiting Korea early next week to renew discussions with the Korean durable company. Videocon had earlier insisted on a 15% reduction in the original purchase bid of $730 mn. Videocon is now hoping to win the bid on the premise that the second sole bidder is an equity fund without the capabilities and expertise to manage Daewoo’s durable business. However, Videocon may stand to lose the bid in case a new bidder enters the fray, offering a more attractive valuation.
Read more on this in The Economic Times.
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