Mahindra eyes bankrupt Swedish carmaker Saab: report
31 December 2011
Mahindra & Mahindra (M&M), India's biggest sport-utility vehicle manufacturer, is interested in buying at least a part of bankrupt Swedish carmaker Saab, a unit of Swedish Automobile NV, Bloomberg yesterday reported, citing two people familiar with the developments.
M&M is in the process of setting up meetings with two court-appointed administrators who are overseeing Saab's bankruptcy to possibly buy a part of the carmaker or the whole company, said the news agency.
Saab filed for bankruptcy on 19 December after hopes of a life-saving funding from Chinese investors, including Zhejiang Youngman Lotus Automobile, collapsed due to opposition from Detroit-based carmaker General Motors (GM), which holds a veto on any sale since it continues to own key patents used by Saab.
GM is not keen to sell Saab to the Chinese fearing it will affect the sale of its own cars in China.
Dutch entrepreneur Victor Muller, the former CEO of sports car maker Spyker Cars, had acquired Saab from GM in 2010 for $74 million in cash and $326 million in preferred shares. But he was later restrained due to lack of funds needed to modernise the Saab line-up, revive sales, and pay suppliers and workers.
The district court in Vanersborg, Sweden has appointed two receivers to either sell the company outright or break it up and sell it piecemeal. The proceeds would be used to repay Saab's creditors, which include GM.