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Geely rejects having interest in bid to take Saab over
Thursday, 06 October 2011
Geely has rejected rumour or what it called insinuations that it has interest in taking over the ailing Swedish automaker, Saab automobile.

This was in reaction to the news item published by the Swedish daily, Dagens Nyheter today which suggested that they had information from sources close the Chinese owner of Volvo cars that a meeting was held with Saab officials in which Geely showed “serious interest in the taking over of Saab.”

“We have no interest in acquiring Saab,” said Geely's Hong Kong-director Lawrence Ang to radio Sweden.
Saab's Chinese partner Youngman, which had promised to pay out Skr640 million to the Swedish automaker, may be about to pull out of the deal, according to Dagens Nyheter .

Yesterday Saab Automobile announced that the money expected from Youngman is overdue and that it is not known when it will finally arrive. Automotive analyst Matts Carlsson believes that the Chinese authorities would rather have Geely, Volvo's Chinese owner, to take over Saab rather than Youngman.

“Probably the Chinese authorities want to clean up a bit among the different companies that are investing in the automotive industry. Therefore, it can very well imagine that Youngman has received a negative reply from the authorities, but that Geely could continue as it has previously approved the deal with Volvo,” says Carlsson to radio Sweden.

Dagens Nyheter wrotes today that Youngman would no longer be as interested as before and that it is considering withdrawing from the deal. But according to Eric Geers Information Director of Saab, it is not true.

“We have a binding agreement with both Youngman and Pang Da and we expect a decision from the NDRC about October 14,” said Geers.

If Youngman withdrawing from the deal, Geely may instead emerge as the would be buyer of Saab, according to Dagens Nyheter. But now Geely has rejected that and terms it “rumor.”

“We have no interest in acquiring Saab,” said Geely's Hong Kong-director Lawrence Ang according t radio Sweden quoting Dow Jones Newswire as source.

But if Geely would still be interested, they could be a great partner according to Matts Carlsson who sees no problem with the two companies.

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