GM to discuss buying stake in South Korean unit from KDB: GM executive

SEOUL Wed Oct 24, 2012 11:50pm EDT

A GM logo is seen on a Hydrogen car during a presentation in Berlin, August 28, 2009. REUTERS/Pawel Kopczynski

A GM logo is seen on a Hydrogen car during a presentation in Berlin, August 28, 2009.

Credit: Reuters/Pawel Kopczynski

SEOUL (Reuters) - General Motors Co (GM.N) plans to have talks to buy a stake in its South Korean unit from the unit's second-biggest shareholder, Korea Development Bank(KDB), the head of GM Korea said on Thursday.

GM owns close to 77 percent of GM Korea but Korea Development Bank's 17 percent holding gives the state-run bank the right to veto decisions made by the automaker.

Tim Lee, head of international operations at GM, made an "informal offer" last week, an official at state-run KDB said.

"We have agreed during our meeting that we will progress with this discussion on a confidential basis," GM Korea President and CEO Sergio Rocha told reporters, confirming the meeting.

(Reporting by Hyunjoo Jin; Editing by Muralikumar Anantharaman)

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