Koenigsegg to Buy Saab

In what is still unconfirmed news, the Swedish television, citing sources close to the matter, says luxury carmaker Koenigsegg, together with a few Norwegian investors including Eker Group, Koenigsegg's largest shareholder, have signed a letter of intent with General Motors for the takeover of Saab.

According to the television's website, the details of the acquisition will be set in place over the following months. Still, the report presented by the source warns none of the parties involved were available for comment.

As you know by now, Saab is down to three bidders for its business: Koenigsegg, the Renco Group and, according to The Financial Times, Wyoming based investor group called Merbanco. The announcement regarding the conclusion of a deal with one of the three is expected towards the end of the month.

Even if the terms of the deal have not yet been established, some details are known. GM would provide $500 million in assets and cash, including production equipment for a future Saab model, while the $150 million in Saab's accounts will go to the highest bidder, or, if the above mentioned report is accurate, to Koenigsegg. In turn, the winner of the bid will have to pay back the money offered by GM, if the company is spun around.

Saab is operating under the Swedish equivalent of Chapter 11 protection. It has been under protection since February. Sweden has yesterday begun talks with Saab to provide state loans guarantees to the European Investment Bank. The money are to be used for financing environmentally friendly projects.

Saab has proven to be a very tough nut to crack for the American manufacturer which owns it. GM has already managed to get rid of Hummer and Saturn, two brands which have been put up for sale only recently, compared to Saab.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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