The ongoing dispute between parties involved in the GM takeover of the bankrupt South Korean carmaker Daewoo is largely down to brinkmanship and 'gesture politics' that do not genuinely put the deal at risk, according to AM-online sources.
GM's buyout was reportedly at risk this week due to talks between the Korea Development Bank, Daewoo's main creditor and Daewoo's main union becoming deadlocked over a historical agreement that union approval has to given for any redundancies. The union wants this agreement ratified under new ownership agreements. And last week Daewoo's parts' suppliers refused to make deliveries in a dispute over unpaid bills.
But today a Daewoo insider dismissed suggestions the 'disputes' threatened the collapse of the GM buyout.
“In each instance parties involved in the deal are putting pressure on GM to see what they can get out of it. We're seeing a lot of gesture politics as each side attempts to get what it can out of a cash-rich company. There is no real risk to the buyout,” he said.
In September GM signed a $400m memorandum of understanding to buy the majority of Daewoo. Final agreeement on the sale is expected in February.