Saab entertains buyout bids from three companies

saabThe struggling Swedish automotive producer Saab is up for sale, and three bidders from different countries have emerged as the most likely winners in the race. Saab’s current owner, General Motors, is not particularly anxious to get rid of the company, but GM is presently struggling for its own life back in the United States.

The Local reports that Italy’s Fiat, China-based Geely and a German bank are currently the most promising prospects in the bidding process. All three companies have already signed off on Saab’s plan to restructure its mountain of debt, which includes relocating the production site for Saab’s new 9-5 car to its plant in Trollhattan.

Guy Lofalk, one of Saab’s administrators, is trying to convince the troubled carmaker’s 700-odd creditors to write down up to 75 percent of the company’s 10.6 billion kroner debt. But whatever the outcome of that, Lofalk expects to sign a preliminary agreement with one of the bidders by early June.

“Things look quite good now. I hope that it stays that way until the end, but nothing is done until it’s done. When things look the most dismal, the situation can suddenly improve, and vice versa,” Lofalk told the TT news agency.

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