Saab Says Companies ‘Showing Interest’ in Deal
Saab Automobile said companies are “showing interest” in partnering with the Swedish carmaker as it works through a court-approved reorganization.
“Several companies are showing interest in Saab right now,” spokesman Eric Geers said by telephone. “We of course have a binding agreement with Pangda and Youngman.”
Saab expects Chinese authorities to make a ruling on the proposed partnerships with Pangda Automobile Trade Co. and Zhejiang Youngman on Oct. 14, Geers said.
Saab, which General Motors Co. (GM) sold last year, is going through a financial reorganization in Sweden after first halting production in late March because suppliers stopped delivering parts. Assembly at the main factory in Trollhaettan has been quiet since early June. In August, the carmaker delayed paying wages for the third consecutive month.
Zhejiang Geely Holding Group Co., which owns Swedish rival Volvo Cars Corp., is in talks to acquire Saab Automobile, Dagens Nyheter reported today. Geely declined to comment on the story.
Swedish Automobile NV, Saab’s parent, advanced as much as 15 cents, or 18 percent, to 97 cents and was up 9.8 percent as of 10:33 a.m. in Amsterdam trading. The shares have dropped 74 percent this year, valuing the Zeewolde, Netherlands-based company at 24.7 million euros ($33 million).
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