Saab Opens Discussions With Other Potential Buyers

STOCKHOLM (Reuters) -- General Motors Co. said on Friday it was talking to possible buyers of Saab, four days before a GM board meeting considers whether to attempt to revive a sale process or eliminate the 60-year-old Swedish auto brand.



"We can confirm that we have heard from different investors. We have a close dialogue and close contact with several who have expressed interest in buying Saab Automobile," spokeswoman Gunilla Gustavs said. "It is not so surprising, given that there were 27 parties who were interested (when Saab was initially put up for sale) and 10 who came and looked the company over in April and May."

Gustavs would not give any further information about whom the possible buyers might be or how many potential suitors money-losing Saab had approached since a potential sale to Koenigsegg Group AB collapsed.

On Tuesday, Sweden's Koenigsegg Group, a consortium of private investors including super car maker Koenigsegg Automotive AB, pulled out of a deal with GM to buy Saab, blaming the length of time it was taking to finalize the agreement and get European Investment Bank loans and loan guarantees.

History of losses

GM has not been in discussions with any other bidders for Saab and analysts have said they expect the most likely outcome to be closure of the brand.

Beijing Automotive Industry Holding Co., China's No. 10 automaker, had planned to take a stake in Koenigsegg as part of the Saab bid.

A BAIC representative did not have any knowledge of separate talks with GM.

Merbanco Merchant Banking Co., based in the U.S. state of Wyoming, had also been interested in Saab.

Merbanco remains interested but has not had any talks with GM since the Koenigsegg deal fell through, Merbanco CEO Chris Johnston told Reuters.

"We are interested, definitely," Johnston told Reuters on Friday. "Are we interested in a six-month odyssey? Not really."

Johnston said he thinks Saab deserves to survive. "It's a great brand and a terrific company. It's got great management," he said.

GM's board meets next week and the question of what to do with Saab will top the agenda.

Saab has not made a profit since it was taken over by GM 20 years ago and estimated it would make a loss of 3 billion Swedish crowns ($427 million) this year and again in 2010.

U.S. financier Ira Rennert and his Renco Group had expressed an interest in pursuing a deal for Saab. A Renco representative could not be reached for comment on Friday.