Source: BAIC, Merbanco, Renco make approaches on Saab

• Source: Global Times
• [11:09 November 27 2009]
• Comments

After Koenigsegg Group pulled out of the bid for General Motors' Saab unit, Beijing Automotive Industry Holding Co. (BAIC), Wyoming-based merchant bank Merbanco Inc., and Renco Group Inc. have made approaches about the struggling Swedish automaker, according to Bloomberg Friday, citing two people familiar with the issue.

The unnamed person said any new bids for Saab will be reviewed by GM's board on December 1 at a meeting. Until now, no written proposals have been submitted. The person also said GM might keep Saab as it did with the Opel earlier this month, and restructure the brand.

Beijing Automotive said November 25 it will "cautiously" reconsider plans to buy a stake in the unprofitable Saab after Koenigsegg said November 24 that it ran out of time to complete the transaction.

Christopher Johnston, president of Merbanco said Wednesday that the investor group would be willing to help Saab. "I do not believe that the company should be closed," he added. "Whoever buys Saab, or if GM keeps Saab, there's a lot of work ahead but I believe that the company should survive."

Agencies and Shi Jierui contributed to this story