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Spyker withdraws funds from Saab offshoot

TT/The Local · 20 Apr 2010, 10:35

Published: 20 Apr 2010 10:35 GMT+02:00

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"Spyker is not taking any money from Saab, this is an independent company which we are buying from GM," said Saab Automobile chairperson and Spyker CEO Victor Muller on Monday.

Spyker Cars is leaking money, with the niche sports carmaker reporting a loss of 220 million kronor ($30 million) in 2009, three times the value of its sales.

To cover its massive losses, the firm now wants to create a so-called cash pool with the British distribution firm Saab GB, enabling Spyker to borrow money for its business, according to a TV4 report.

The detail was included in a footnote in Spyker Cars annual accounts.

"We are not hiding anything. It is clearly stated in our financial statement," Muller told news agency TT.

Saab GB is currently owned by US General Motors (GM) and is set to be acquired by Spyker Cars for the sum of £1 ($1.5).

"We don't see anything strange in this. We have said all along that no money will move from Saab to Spyker Cars. And it does not in this case either. Saab GB is a completely independent firm which Saab does not own," Victor Muller said.

Spyker Cars has until July 15th to hand over the outstanding 175 million kronor to GM to complete the purchase of Saab. Swedish rules prohibit buying a firm with its own cash and Muller argues that the latest move is not in breach of these regulations.

Story continues below…

But Lennart Ihredal of the professional institute for authorized public accountants (FAR) said the set-up could test the limits of what is acceptable.

"You would then have to look at the regulations in place in the various countries. But in an acquisition such as this I would have it on the check list, so that you don't breach any regulations," Ihredal told TV4.

TT/The Local (news@thelocal.se)

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Your comments about this article

12:57 April 20, 2010 by Mb 65
Same thing happened to Rover in England. they bought the company and the sold of all the assets and pocketed the money and then closed down.
13:42 April 20, 2010 by Nemesis
If they try to buy with the companies own money, then charges should be brought by the Swedish authorities against them and the company seized by the government.

Buying a company wiht its own money may be standard practice in countries which encourage coruption, but in Sweden is illegal and rightly so.
15:03 April 20, 2010 by Ghostrider
Something smells fishy.

Looks like Spyker bought Saab to fund Spyker.

Wow, Saab has surplus cash?

Anyone surprised?
15:56 April 20, 2010 by witsltd

Its not the same SAAB, read the article again.

This is in fact good news for the original SAAB.
19:23 April 20, 2010 by studentecon
$1.5 dollars?!
23:00 April 20, 2010 by Ghostrider
"This is in fact good news for the original SAAB."

How exactly is this good news for the original Saab? Spyker takes money and resources from a Saab entity and channels it away from Saab to cover losses at Spyker. Smells to me.
01:05 April 21, 2010 by GLO
This is just NUTS !!!!!!
01:13 April 21, 2010 by bezjaj
I bid 2 £..
01:54 April 21, 2010 by repat_xpat
Sounds like Russian money laundering.
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