BAIC, Merbanco & Renco Speculated As Bidders For Saab

Posted on 26. Nov, 2009 by Ryan in 2000-2009

Bloomberg is now reporting that the “usual suspects” we heard about in the beginning of the year, which include BAIC of course as well as the 2nd and 3rd bidders, Merbanco & Renco, are back.

This is all like a time warp back to the bidding process we saw in the early part of the year.

We’ll all learn what will be taking place by Tuesday which will be here soon enough.

Beijing Auto, Merbanco, Renco Said to Make Approaches on Saab

By Serena Saitto, Ola Kinnander and Jeff Green

Nov. 26 (Bloomberg) — Beijing Automotive Industry Holding Co., Merbanco Inc. and Renco Group Inc. have made approaches about General Motors Co.’s Saab unit after the collapse of a sale to Koenigsegg Group, said two people familiar with the situation.

No written proposals have been submitted and any new bids or other options for the Swedish unit will be reviewed by Detroit-based GM’s board at a meeting on Dec. 1, said one of the people, who asked not to be identified because the discussions are confidential.

Koenigsegg said Nov. 24 that it pulled out of talks to acquire Saab, saying it ran out of time to complete the transaction. Beijing Automotive was a partner in the Swedish investor group. While GM directors might opt to keep Saab, as they did with the Opel division this month, GM has a contingency plan that calls for winding down the brand, people familiar with the plan have said.

Beijing Automotive said yesterday that it will “cautiously” reconsider plans to buy a stake in the unprofitable Swedish carmaker. A Beijing Automotive spokesman couldn’t be reached for comment today.

Merbanco is a Wyoming-based investor group. President Christopher Johnston said in an interview today that Merbanco would be willing to help Saab. When asked whether that could include acquiring a majority stake in the carmaker, he said: “That could be one way.”

Renco spokesman John Dillard didn’t return a phone call.

Chris Preuss, a GM spokesman, and Saab’s Eric Geers declined to comment.

Merbanco was among suitors that lost the bidding in June to Koenigsegg, a person familiar with the process said at the time. Renco, owned by billionaire Ira Rennert, had also expressed interest.

Tags: Automotive Component Group, Chris Preuss, Christopher Johnston, Eric Geers, General Motors Co., Ira Rennert, Jeff Green, John Dillard, Merbanco Inc., Ola Kinnander, Serena Saitto