F1 boss Bernie Ecclestone and investment company Genii Capital will soon have the initial financing in place to show General Motors they have the necessary funds to purchase Saab, Swedish daily newspaper Dagens Industri revealed today.
The paper said Ecclestone and Genii would have 500 million to 1 billion crowns (£55 million to £110 million) in an account in a couple of days. However, it was not clear whether the group had as yet sent in a formal bid Saab. In total, a buyer needs to have about 10 billion crowns to invest in Saab over the longer term, with GM demanding that prospective owners have an initial 1 billion to 2 billion crowns in cash to show, Dagens Industri said, quoting sources.
“I have had contacts with GM, who have given us a deadline of the beginning of this week, which I interpret as Monday through Wednesday,” spokesman Lars Carlstrom said.
In addition to the cash sum, a buyer must be able to show it doesn’t need a loan from the European Investment Bank, Carlstrom said.
“That is an absolute condition from GM’s side and one of the keys to being able to buy Saab,” Carlstrom said. “No one knows if the EIB would agree such a loan.
GM, the No. 1 carmaker in the US, has been trying to sell the ailing Swedish carmaker for more than a year and it is preparing to wind down the 60-year old company if it doesn’t receive a suitable bid.
According to the quoted sources, the bid for Saab from Spyker Cars NV is the strongest contender so far.
Source: Automotive News