Genii Quits Saab Negotiations

Following the recent rumors and statements that Spyker is indeed favorite in the race to take control of Saab, Genii Capital, the Luxembourg-based investment company backed by Formula 1 boss Bernie Ecclestone, decided to walk away from the deal. The official reason behind this decision is that "the timing of the bidding process for Saab is incompatible with implementing a solid business platform for the future".

As said, Spyker and GM are currently involved in deep negotiations, and sources familiar with the matter are claiming that a final decision could surface as soon as today.

"Genii Capital was brought into the year-long bidding process for Saab just three days before the closing deadline. During this year, Saab Automobile AB had been engaged in a partial shutdown process as a result of the length of the negotiations," Genii Capital said in a statement.

"Genii Capital is in a position to move quickly and aggressively, but building solid partnerships for the long term demands both time and intensive work. Unfortunately, Genii Capital believes that the timing of the next stage of the shutdown process at Saab is not compatible with its requirements for putting in place a solid business platform for the future and closing the transaction."

According to Swedish media, General Motors and Spyker will host a press conference later today to announce the decision to sell Saab. However, GM CEO Ed Whitacre said yesterday that there's still no deal on Saab and, although negotiations on the Swedish unit are indeed advancing, the winding down process also continues.