GM to decide on Daewoo takeover 'as soon as possible'

General Motors says it is still interested in buying Daewoo, and plans to decide whether to do so "as soon as possible".

The company has dismissed reports that it may not be able to decide on the deal until the end of the year as "incorrect".

GM entered into negotiations to buy Daewoo last September, but has reportedly been reluctant to continue the talks without laying off workers.

In a statement GM said: "Our position is that GM continues to be interested in Daewoo and although we are unable to be specific about a date, GM is committed to making a decision as soon as possible."

Daewoo Motor's business turned for the worse during the 1997-98 Asian economic crisis and the carmaker has been under court receivership since going bankrupt in November with an estimated debt of $15bn.

The company so far has laid off 5,500 of its 16,000 work force to sweeten a possible deal with GM.

South Korea's Commerce, Industry and Energy Minister Chang Che-shik said earlier this week that GM was expected to announce its plan to buy Daewoo in early May.

The government has said that Daewoo's creditors would look for another buyer if GM walks away from the deal or offers a bid that is too low.

In bidding last year, GM reportedly offered between $3bn and $4bn.