Koenigsegg Won't Give Up Saab Acquisition

Swedish sports car manufacturer Koenigsegg won't pull out of the Saab deal, an official of the company said, in spite of statements that the company might give up if negotiations for loans from the European Investment Bank do not make progress. Christian von Koenigsegg, CEO and part owner of the Swedish luxury sports car maker said talks for the money are actually going well and re-emphasized that Koenigsegg hopes to close the deal by the end of October.

"Our deadline for the deal still remains the end of October as we have previously said," he was quoted as saying by Reuters.

Last week, Norwegian businessman Bard Eker, who's also holding a Koenigsegg share, said last week in an interview for Swedish business daily Dagens Industri that the sports car manufacturer might give up negotiations in case negotiations for EIB funds do not advance.

"If everything is not in place before Wednesday we are out. We give up," Eker was quoted as saying.

Back in June, General Motors and Koenigsegg reached an agreement for Saab, with the European Investment Bank agreeing to provide $600 million financing with state guarantee by the Swedish government.

“The proposed agreement will enable us to maximize the brand’s potential through an exciting new product line-up with a distinctly Swedish character. Today’s announcement is great news for Saab’s current and future customers, dealers, suppliers and employees around the globe," said at that time Jan Ake Jonsson, Managing Director of Saab Automobile AB.

Both General Motors and Koenigsegg are expecting to close the Saab deal by the end of October.