MG Rover talks tough over Daewoo-FSO deal

Talks between Daewoo creditors and MG Rover broke down on Friday as, in an unexpected move, the British company changed the terms under which it would start its investment in Daewoo-FSO. MG is demanding that the whole financial burden be shouldered by the Polish side with a special guarantee given to the British that would make the deal virtually risk-free for them. The news took the Polish side by surprise as on Thursday the talks were going very well. After renewed negotiations on Friday, the two sides declared their readiness to reach a binding decision before the end of February. However, the banks crediting Daewoo said the talks will only be resumed once MG return to its previous, more favourable offer. (Rzeczpospolita, Feb. 15-16 p. A1, B1, B2) J.K.