GM Seeks to Tighten Grip on Korean Unit

General Motors Co. has made an informal offer to buy the Korea Development Bank's 17% of GM Korea for an unspecified price, Reuters reports.

An anonymous bank source tells the news service that KDB will consider selling the stake after it receives a formal offer.

The proposed purchase would boost GM's stake in its South Korean unit to 94% and end the state-run bank's veto power over company decisions. China's SAIC Motor Corp. owns the remaining 6% stake.

Korean press reports have speculated that GM is clearing the way to restructure the unit, which was formerly known as GM Daewoo Auto & Technology. The American company bought the most of the assets of defunct Daewoo Motors in 2002.