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GM and Fiat nearer takeover of Daewoo

General Motors and Fiat are considering a takeover offer for Daewoo Motor.

According to the FT the US and Italian carmakers would gain control of the insolvent South Korean group in return for a sizeable "working capital injection".

According to the FT, both GM and Fiat declined to comment on reports that the working capital injection for Daewoo's Korean retail operations and Kunsan car plant could exceed $2bn. But an insider is quoted as saying: "A decision is pending on whether to enter formal negotiations. The parties are looking for ways to make this work as a viable business."

Formal talks on the deal could take several weeks.

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