Monday 11th January 2010

Bernie and Genii Prepare To Bid For Saab

GM tells potential investment duo to "show me the money"

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The potential bid from Bernie Ecclestone and Luxembourg-based investment firm Genii to buy Saab from GM is reportedly in full progress. Swedish financial newspaper Dagens Industri reports that the would-be purchasers have been told that they need to prove to GM they have the cash to invest in Saab in the long-term.

Apparently, prospective investors have been told to deposit a demonstrative sum of between 500 million and one billion Swedish Kronor (£44m-£88m) into an account.

The sum has to be funded privately, to show that it doesn't rely on the European Investment Bank, and the investors must prove that they will be able to source the equivalent of £881m (10 billion Kronor) to invest in Saab's future.

GM's protectionism when it comes to selling Saab may seem like a prudent attempt to ensure that a respected motoring brand survives, but some commentators are suggesting that it seems more likely GM is attempting to prevent any lawsuits that might come from angry shareholders if Saab was sold to a weak party and subsequently folded.

According to the Swedish paper's sources, the bid from Spyker remains the strongest so far, though at this point GM hasn't declared that it is necessarily going to sell Saab to any of the prospective bidders.

The deadline for Bernie and Genii's ('Bernii'?) bid is reported to be 'early this week', so we should know the score soon enough.

[Alfa Papa]

I guess GM want to avoid any Ford-Visteon-type scenarios. Would they also be seeking to protect technological secrets? Even without the usual raft of SAAB jokes, I wouldn't imagine they had too many of these left... (apart from the manufacture of the Night Panel button)

[carsnapper]

I hope Bernie gets the nod on this. If anything it might distract him enough or encourage him to abandon his multi-billion pound cash cow that is F1. Which can only be a good thing.

[Strawman]

article said:

investors must prove that they will be able to source the equivalent of £881m (10 billion Kronor) to invest in Saab's future.

Isn't Ecclestone worth more than that on his own, so jobs a good'un.

[Speedy1985]

Yeah Bernie could get away from F1!!! Hope he buys it!!! Unfortunately, don't think that will happen... Saab is doing really bad...and the business is getting really really difficult... GM is trying to get the best out of the brand...but the buyers don't want to spend that much on a brand that will give them a lot of work and expenses...

Edited by jeremyc on Monday 11th January 16:54

[Speedraser]

"GM is trying to get the best out of the brand"

I couldn't disagree more -- GM did a superb job of getting the worst out of SAAB, destroying it in the process. Hopefully they'll do the only decent thing left -- let someone else try to save it and bring it back to being the interesting and innovative company it was before GM got its "branding" hands on it.

[mark3man]

Much as I hope Saab survive (having owned half a dozen) some of Ecclestone's millions are tied up in property. GM are behaving strangely - either it's for sale or it isn't. Whether it crashes or booms later really isn't their problem. viz BMW and Rover.
Looks far more likely that the make will join Volvo as something owned by an emerging manufacturer. Hard to fit it in with any other 'names'.
Used to be (remember Polski Fiat) that Europe would flog its clapped out tooling, now it seems the whole company is on offer.

[rory182]

Speedraser said:

"GM is trying to get the best out of the brand"

I couldn't disagree more -- GM did a superb job of getting the worst out of SAAB, destroying it in the process. Hopefully they'll do the only decent thing left -- let someone else try to save it and bring it back to being the interesting and innovative company it was before GM got its "branding" hands on it.

Agreed 100%, they've given this one time dare I say 'premium' and very innovative brand a bad image with all the glorified vectra slander. My friend works in Sweden's automotive industry and reckons the staff at Saab are very ingenius because they have so little to work with thanks to GM.

[Speedy1985]

I know GM has destroyed Saab...and I agree with that...but at this point they want to make the best business possible...

[anonymous-user]

Speedy1985 said:

I know GM has destroyed Saab...and I agree with that...but at this point they want to make the best business possible...

Think you're still being too kind. GM's definition of 'best business' is making sure their rear-end is covered.

[Gizmo!]

Small but interesting note: Genii was the investor that recently took a majority stake in the Renault F1 team. ( http://www.autosport.com/news/report.php/id/80594 )

Bernie "the Famous Eccles"tone has something to do with F1, I think...

Coincidence?

[youbeenspied]

Anybody fancy a sweepstake (o;

[Lotus7th]

Nice pic! I see on James Allen's blog that there would be the distinct possibility of the Renault team being renamed Saab in a few years if this went ahead