Saab: Fiat Backs Down, Merbanco Steps In

The Saab sad story continues but, as we got used to by now, not with official developments, but with rumors coming from inside sources. Even if the Swedish company has not yet named any of its suitors, according to a Financial Times report, a little known Wyoming based investor group called Merbanco is in the race for Saab's hand.

Along side Merbanco, Swedish manufacturer Koenigsegg and U.S. Renco Group battle for the same goal. According to the same source, the winner for GM's last standing bad brand will be named this week.

Terms of the deal are pretty much as follows: GM would provide $500 million in assets and cash, including production equipment for a future Saab model. The $150 million in Saab's accounts will also go to the highest bidder. In turn, the winner of the bid will have to pay back the money offered by GM, if the company is spun around.

As for the Italian Fiat, it says it no longer has any interest in taking over Saab. According to Sergio Marchionne, there can be no Saab without Opel in his mind and plans.

"The work on Saab was linked to Opel, taking into account that the technical input all came from Opel. Saab doesn't stand up on its own, thus the possibility of something happening for Fiat is minimal," Marchionne was quoted as saying by Autonews.

Saab on the other hand said it has enough money to survive until it has a new owner. The manufacturer is now operating under the cover of the $150 million in its accounts. "We will have enough to pay salaries and suppliers, to keep operations going until we get out of reconstruction," a spokesman for the company said a few days ago.