Saab Turns Down Takeover Offer From Chinese Investors
By Jake Lingeman
Swedish Automobile, owner of Saab, has turned down a takeover offer from China's Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co.
Youngman and Pa Dang signed a nonbinding memorandum in July to take a combined 53.9 percent stake in Swedish Automobile for about $338 million.
Instead, the two Chinese companies made an offer for a direct purchase of shares in Saab on Friday. They say because circumstances have changed since July, so should the deal. Swedish Automobile declined the offer and asked Youngman and Pa Dang to honor the original agreement.
According to Swedish Automobile CEO Victor Muller, “The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab.”
Muller also said there was a plan B, if the Chinese investors fell through, though he declined to reveal it.
At the same time, there is still hope for Saab. U.S. private-equity company North Street Capital promised the brand $70 million. But attorney Guy Lofalk, the administrator in charge of Saab's case, says that amount was far from enough to continue reorganization. He asked the Swedish courts to lift the bankruptcy protection. They are set to decide on Oct. 28.
It looks like no one knows who the owner of SAAB is.
I don't believe that the owner is involved.
SAAB is not being sold.
You are way behind the curve to worry about the Chinese. Too late, they have taken control of the world economy, fed impart by U.S. consumers! Chinese will get what they want, when they want it. Welcome to the new "world economy".
We can't afford to let the Chinese take control in anywhere of Western hemisphere. For they'll use it as a mean to acquire new technologies. We have enough problems with China already and we don't want any further complications.
If China want to stand among advance industrialized nations well the only way is to create their own technologies. And don't flash the world with the wealth because this money was not honestly made. Considering the imbalance of the world economy for once and the US as a whole in favor of China.
“The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab.”
And what will happen, Mr. Mueller, if the coffers are completely dry (as they nearly are)? Will the company magically become as popular as Toyota, or will it shut it's doors? Guess that's not considered an end to Saab.
sweden's government should bail saab out!?
just as i expected, the chinese are getting hostile.
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