Woori Bank, the largest creditor to Daewoo, said the bank along with other creditors have decided to abandon the plan to sell the company to Videocon-led consortium due to differences over pricing, according to Xinhua Finance news agency.

"We creditors have found that the revised offer by Videocon is still unacceptable and thus we are in the process of notifying the Indian company that the memorandum of understanding signed earlier is dropped and they lost their status as preferred bidder," the Woori Bank spokesperson said in Seoul.

The official said the process of selling Daewoo would start afresh, although the creditors have left open the possibility of more talks with Videocon. Officials of Videocon declined to comment but sources said the company is expected to take part in the fresh bids.

The consortium comprising India's Videocon and US equity firm Ripplewood had initially asked for a 13 per cent cut in the deal value after conducting due diligence, and later revised it to 10 per cent after strong opposition from the 40-odd creditors to Daewoo Electronics.

The Videocon-led consortium was shortlisted from a number of bidders to acquire Daewoo Electronics last October for 700 billion won (about $730 million).