"We plan to sign the deal next Tuesday," a source close to the long-anticipated takeover of bankrupt South Korean automaker Daewoo by General Motors announced in Seoul. The transfer is valued at $1.2 billion and will bring to a conclusion negotiations that date back to December 1999. The new company, tentatively named GM-Daewoo Motor, aims to begin production in July.
Enron won approval from a bankruptcy judge in New York to distribute up to $140 million in bonus and severance pay among 1,700 employees. The bulk would go to those who help sell off the collapsed energy trader's assets. At the request of creditors and the Securities and Exchange Commission, Judge Arthur Gonzalez also ordered greater disclosure of which employees qualify and more input by a court-appointed examiner. (Related story, page 3.)
Marriott International Inc. confirmed it is being sued by client CTF Hotel Holdings, a unit of Hong Kong-based New World Development Ltd. But a spokesman declined further comment on a Wall Street Journal report that said the lawsuit accused Marriott, its Renaissance Hotel Operating Co., and procurement arm Avendra LLC of racketeering, bribery, and price-fixing. Industry experts said the suit was the latest example of friction as hotel owners hire outside management companies.
In layoff news:
Four thousand jobs will be cut by Jan. 1, 2004, Siemens VDO Automotive announced. The company, a subsidiary of German engineering conglomerate Siemens, is a world leader in making electronic parts for cars, trucks, and agricultural machinery.
Tellabs Inc. said it will cut 1,200 jobs and close an assembly plant in Ronkonkoma, N.Y., "to keep pace" with the optical networking and broadband-access industry environments. The company is based in Naperville, Ill.
Motorola will close a cellphone distribution center in Harvard, Ill., eliminating 850 more jobs, an announcement said. The layoffs bring to 42,900 the number of workers let go as the company has experienced five consecutive quarterly losses.
Another 500 workers will be laid off by Commerce One Corp., the struggling Internet software supplier said. The Pleasanton, Calif., company shed 1,300 jobs late last year.