GM to Sign Takeover Deal With Daewoo-Latest Story

SEOUL, South Korea AP reported today that General Motors Corp. was expected to sign a $1.2 billion deal Tuesday to take over South Korea's Daewoo Motor Co., both sides said Monday.

Daewoo spokesman Kim Sang-won said the signing will include GM Chairman Jack Smith, Daewoo Chairman Lee Jong-dae and Jung Keun-young, head of the state-run Korea Development Bank, Daewoo's main creditor bank.

Kay Lee, a spokesman at GM's Seoul office, confirmed the plan.

A news conference was tentatively scheduled for Tuesday in Seoul, according to Jerry Dubrowski, a GM spokesman in New York. He could not confirm the terms of the agreement.

GM signed a preliminary deal to take over Daewoo in September. It had hoped to complete the purchase by the end of 2001, but negotiations dragged on because of differences over financial details.

The long-awaited deal is expected to boost the confidence of foreign investors in the South Korean economy. The acquisition also would give GM production bases in Asia, the world's fastest growing auto market.