The talks between a Videocon-led consortium and Daewoo's promoters had failed earlier, after the consortium asked for a 13 per cent discount on the initial bidding price of $752 million.  

The Videocon [Get Quote] consortium, that includes RHJ International, a part of the US private equity fund Ripplewood Holdings, had initially bid $752 million to acquire 97.5 per cent stake in the company.

V N Dhoot, chairman, Videocon Industries, told Business Standard, "We are planning to renew talks with Daewoo Electronics."

Videocon had submitted a revised bid after the creditors of Daewoo Electronics had rejected its initial offer. The group of Daewoo's creditors include Woori Bank and Korea Asset Management Corp (KAMCO), holding 97.5 per cent in the Korean electronics major.

The only other strong contender for Daewoo's assets is South Korean equity fund MBK Partners, which was set up by former employees of US fund Carlyle Group. Dhoot had earlier told Business Standard that Videocon wanted commercial viability from the deal and the company did not want to pay an exorbitant price.

Daewoo Electronics has been run by creditors since the Daewoo conglomerate collapsed under $80 billion of debt in 1999. The company had posted a net loss of 94 billion won in 2005 from a net profit 30.4 billion won in 2004, as a stronger won put pressure on its export-led business.

Although it ranks a distant third behind Samsung Electronics and LG Electronics in Korea, Daewoo's substantial sales in Europe and the US make it appealing to overseas bidders.

The proposed acquisition fits into Videocon's strategy to become an Indian multinational as Daewoo operates six plants in South Korea and 18 overseas.