Seoul: A $513 million takeover deal for South Korea’s Daewoo Electronics Co Ltd has collapsed, leaving its creditors-turned-shareholders to tap reserve bidder Swedish electronics firm Electrolux AB .
Officials from major shareholders Korea Asset Management Corp and Woori Bank said they had decided to drop the deal to sell the unlisted electronics maker to Iran’s Entekhab Industrial Group.
A source who declined to be named said Entekhab made a request to cut the price by about 60 billion won ($55.4 million) but the request was not accepted.
The move is the latest setback to the sale process, which creditors had hoped to wrap up after a series of failures.
The unlisted Iranian appliance maker was named preferred bidder for Daewoo in 2010, beating out rival Electrolux, but it has repeatedly failed to satisfy creditor demands for detailed funding plan, resulting in several months of delays to the final agreement.
It was the fourth attempt by creditors to sell Daewoo, which primarily makes washing machines and refrigerators.