RSS Feed Saab shirks takeover bid by China's Pang Da and Youngman, terminates deal

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Filed under: Europe, Saab, Earnings/Financials



Saab has officially confirmed that it has terminated its deal with Pang Da and Youngman. In a press release, the company said that the deal came to an end because both of its Chinese partners failed to live up to their end of the bargain; namely supplying Saab with the interim funding necessary to continue operations during the manufacturer's reorganization. In response, Pang Da and Youngman apparently offered a complete takeover by purchasing 100-percent of the Swedish automaker's shares, but Saab since rejected that offer, calling it "unacceptable." However, Saab notes that further discussions are ongoing.

That leaves the future of Saab in its most precarious state since the deal with Pang Da and Youngman was initially announced back in July. While the automaker recently signed a smaller deal with North Street Capital, it's unclear where Saab is headed in the immediate future. Why has CEO Victor Muller and his team decided that it's better to risk slipping into bankruptcy instead of having the brand live on under Chinese ownership? Is there another partner in the works, is this just a misguided power play, or is there something else afoot entirely? Only time will tell - as Saab's last 24 months indicate, absolutely nothing can be ruled out. For now, hit the jump for the full press release.Continue reading Saab shirks takeover bid by China's Pang Da and Youngman, terminates deal

Saab shirks takeover bid by China's Pang Da and Youngman, terminates deal originally appeared on Autoblog on Mon, 24 Oct 2011 11:01:00 EST. Please see our terms for use of feeds.



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[96mn12]

[kimvette]

. . . this is why you never announce pending negotiations as done deals. How many deals has VM proclaimed as firm now? I lost count long ago.

[saabhutter]

This is such a joke... I'm on my way to SU. Laughter surely will ensue.

[bluefever]

sounds like vm has something up his sleeve,or he would rather see saab die with dignity than be owned entirely by the chinese.Only time will tell......

[kimvette]

Originally Posted by bluefever

sounds like vm has something up his sleeve

if that were the case SAAB would be producing cars right now.

[TunnanXWD]

Sleeve or pocket? I think pocket pool is more like it and his hand is Vlads. It's an away game.

[mike saunders]

Originally Posted by bluefever

sounds like vm has something up his sleeve,or he would rather see saab die with dignity than be owned entirely by the chinese.Only time will tell......

VM wears tank tops.