The attempt to become competitive in the commercial world has brought Hungary’s once-proud computer and electronics manufacturer Videoton to the verge of bankruptcy, but the promise of rescue has come from an unexpected quarter given Videoton’s long-standing ties with Bull SA on the computer front. McDonnell-Douglas Corp has made a statement of intent that it will buy a 51% stake in Videoton for around $70m. The Hungarian Credit Bank is to take a 30% stake and is bankrolling the company until the McDonnell deal is complete. In 1989, Videoton’s sales were the Forint equivalent of about $445m. The collapsing market for defence equipment hurt it the hardest, Reuter notes.
