New buyer interest to bid in Volvo sale
TT/Christine Demsteader · 21 Nov 2009, 13:29
Published: 21 Nov 2009 13:29 GMT+01:00
Ford has previously indicated that Geely is the preferred choice to take over the Sweden-based company, which continues to show losses.
According to newspaper Dagens Industri, the US consortium Crown will make an offer in the next seven days with half of its capital coming from Swedish investors.
Crown is led by American Michael Dingman who brings 21 years of experience as a board member of the US-based Ford.
Dingman is joined in the consortium by advisor and former Volvo CEO Roger Holtback.
Whilst the Geely bid is estimated to be valued over $2 billion no details have yet been released of the Crown consortium’s counter offer.
A third party, the Jakob Consortium, dominated by Swedish investors has also pledged an interest in the buy out.
Losses for Volvo Cars continue to shrink. In November, the company posted their best quarter result of the year, losing $135 million compared with the $458 million it reported lost in the same period of 2008.