Only one bidder for ailing Saab: report
Roger Choate · 17 Jan 2010, 10:49
Published: 17 Jan 2010 10:49 GMT+01:00
- Formula One boss submits new Saab bid (13 Jan 10)
- Spyker chief: we've shown GM the money (13 Jan 10)
- Workers: 'Save Saab from Gangster Motors' (12 Jan 10)
According to Bloomberg News, “two people close to the situation” said the Spyker bid was the only one being considered by the Detroit automotive giant. The agency said Spyker has offered GM $75 million in cash and $325 million in preferred shares in the company that would emerge following the transaction. “Discussions between Spyker and GM are ongoing,” said a Spyker spokesman.
General Motors confirmed that discussions are proceeding, while it continues to wind down the company in a liquidation process. Bloomberg News suggested that a decision about whether to continue discussions with Spyker would be made by GM shortly.
The Bloomberg report was questioned by the financial group Genii Capital that includes Bernie Ecclestone, the Formula 1 boss. It had earlier placed an unspecified bid for Saab. Over the weekend a Genii spokesman said it would be able to deliver an even stronger bid than Spyker, with more cash upfront.
The Swedish government has stated it is prepared to provide loan guarantees if a suitable buyer is found. At stake are 3,400 jobs worldwide, mostly in Sweden where Saab cars are assembled. The company has not turned a profit since 2001.
In November Swedish sports car maker Koenigsegg backed away from a deal to buy the company from GM.