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GM bid for Daewoo 'imminent'

Tomorrow General Motors is expected to make a takeover bid for the bankrupt Daewoo Motor.

The talks, according to today, will begin between GM and state-run Korea Development Bank, Daewoo's main creditor, and focus on the takeover price - which may be less than half the price GM offered during original talks two years ago - and the future of Daewoo's biggest car factory at Pupyong.

GM had originally offered $5 billion for Daewoo in 1999, but it chose instead to talk to Ford, which was offering about $7 billion. It then withdrew its bid leaving the way open for GM to renew talks – on a reduced offer. It's believed GM is prepared to offer only $1 billion to $2 billion.

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