Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Entekhab Threatens To Pull Business, Take Legal Action Over Failed Daewoo Deal
Jun 3, 2011
 Printable format
 Email this Article
 Search

Iranian appliance maker Entekhab Group, in a statement reported by Reuters, threatened to pull its distribution business from appliance maker Daewoo and take legal action against Daewoo shareholders after the shareholders pulled out of an agreement to sell Daewoo to Entekhab. Shareholders pulled out of the agreement after Entekhab failed to come up with a way to pay for the acquisition.

Entekhab called the actions of Daewoo shareholders illegal but did not make clear its grounds for the claim. Daewoo said in a Reuters report that Entekhab business accounted for about 5% of its revenue last year, but would not give further comment on the potential financial impact should Entekhab make good its threat to cut business ties. Entekhab distributes Daewoo appliances in Iran.

In statements reported by the Iranian Students News Agency, Entekhab appears to hold Daewoo shareholders responsible for coming up with a solution – one that will give Daewoo to Entekhab in the end. Daewoo shareholders have not responded.

As has been reported in ApplianceMagazine.com news, most recently on June 1, shareholders of Korean appliance producer Daewoo have been trying for years to sell the company. Bidding in 2010 resulted in two top contenders, Entekhab and Electrolux. Eventually shareholders chose Entekhab, which makes appliances in Iran under brand names Bost and Snowa as well as selling Daewoo appliances.

But Entekhab failed to recruit investors and couldn't get funding in place for the Daewoo acquisition by the February 2011 deadline, or by a second deadline in April. A Reuters source said Entekhab wanted Daewoo shareholders to cut their price by about $55 million. Earlier this week, Daewoo shareholders indicated they would no longer pursue the deal with Entekhab and would restart talks with Electrolux.

Back to Daily News

 

Daily News

...........................................................

Dec 22, 2014: DOE's Building Technologies Office releases Roadmap for Emerging HVAC Technologies

Dec 19, 2014: Whirlpool Corp. provides guidance for 2015

Dec 19, 2014: Panasonic to showcase built-in appliances at LivingKitchen 2015

Dec 19, 2014: New residential construction in November 2014

Dec 19, 2014: 2014 U.S. steel production up 0.7% from 2013

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: Appliance Magazine Market Insight Annual Subscriptions
November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows