Genii withdraws from Saab bidding, Spyker suspends share trading

Genii Capital has pulled out of the running for Saab, just a couple of weeks after placing their original bid. This leaves Spyker as the only remaining bidder.

Genii states they pulled out because of GM’s continued efforts to wind down the brand. They believe that by the time they could seal a deal, Saab would be in too bad a condition for a solid business platform.

This hasn’t stopped Spyker however, and now there is reason to believe Spyker will be announcing the status of the deal soon. Spyker has suspended trading of shares. This is usually done before a company announcement during trading hours. Earlier today, Victor Muller himself said “I can’t comment now, but there will definitely be an announcement later today.” This very announcement could be approaching.

Also backing this up is GM’s statement that they would be making an announcement of some sort today. Some sources believe that this announcement will be about Saab.

This doesn’t mean that Saab will be sold, this could very well be an announcement about the failure of reaching a deal, but Muller said “Negotiations are ongoing and the spirit is positive, but we are very, very tired.” Positive spirit, sounds like a good thing to me.

The deal is reportedly that Spyker will pay GM $75 million for Saab. GM will keep about $100 million in current Saab liquidity, and $325 million in preferred shares of the new, Spyker-owned Saab. Let’s hope these terms are good enough for General Motors.

Source: Autocar (1) (2)

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