Daewoo Fights To Keep Thomson Deal

The head of Daewoo Electronics and the founder of its parent company tried to allay French fears through interviews in two leading French newspapers, promising hefty investment and a long term commitment to the country.

The chairman of Daewoo Electronics, Bae Soon-hoon, was trying to counter criticism about a South Korean company acquiring leading-edge French digital television technology cheaply.

He said his company would spend at least FFr10 billion ($1.9 billion) on TMM.

Meanwhile, French finance minister Jean Arthuis reaffirmed that the government was set on selling defence and consumer electronics group Thomson SA to Lagardere Groupe and Daewoo even if Prime Minister Juppe wanted a public debate on the sale of the state group.

 

Juppe told parliament on Tuesday he would call a debate on the sale, for one symbolic franc, after an FFr11 billion ($2.2 billion) capital injection, in reaction to a public outcry and criticism from opposition parties and also from within his own coalition.

Arthuis dismissed criticism on the governments decision to sell the company by way of a private placement instead of a public sale.

This is a company that could not be privatised through a public offer, Arthuis told reporters at a press briefing on Thursday.