GM shareholder retracts Saab sale demand
The Local · 28 Feb 2006, 15:05
Published: 28 Feb 2006 15:05 GMT+01:00
GM, which purchased 50 percent of the Swedish carmaker in 1990 and became full owner in 2000, has never realized a return on its investment.
Kerkorian, a billionaire investor who owns approximately ten percent of GM shares, advised GM in January to sell Saab.
But Kerkorian's representative at GM, Jerry York, has dropped the recommendation, the paper reports.
According to GM Vice Chairman Bob Lutz, selling Saab would be difficult.
"Saab is no longer an independent company that you could sell off as a unit," he is quoted saying in The Detroit News.
Lutz claims the company has been integrated into GM, and that it will soon show a positive result.
"It will be profitable soon," Lutz said. "Of course we'll keep it."