SEOUL, South Korea (AP) -- Appliance companies from Sweden and Iran have been named preferred bidders for Daewoo Electronics, one of the South Korean company's creditor banks announced Wednesday.
Sweden's Electrolux AB and Iran's Entekhab Industrial Group were named as preferred bidders, said Jung Hee-kyung, a spokesman for Woori Bank.
Jung said an approximately 8-week due diligence process would be conducted beginning next week. Based on that, a memorandum of understanding would be signed, possibly in June, he added.
In Sweden, Electrolux spokesman Anders Edholm confirmed Wednesday that his company had made an offer for Daewoo, but declined to comment on the amount of the bid.
"It's an ongoing process so I can't say much more right now," he said.
Daewoo Electronics Corp. has been under a creditor-led debt-rescheduling program since 2000 after amassing huge debts.
Stockholm-based Electrolux is a leading manufacturer of household appliances including refrigerators, stoves and washing machines.
A planned sale of Daewoo to a consortium led by India's Videocon Industries Ltd. was scrapped in 2007 mainly due to differences over price.
Daewoo Electronics could not immediately be reached for comment late Wednesday in Seoul.
