REPORT: Saab deal between GM and Koenigsegg finalized

[Haltech]

Filed under: Europe, Government/Legal, Plants/Manufacturing, GM, Saab, Earnings/Financials

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The deal has been signed, but the cash still hasn't changed hands. In a nutshell, sources say that's where the share transfer agreement between GM and Swedish manufacturer Koenigsegg sits (an "official" announcement is expected today). Those close to the deal say the two companies agreed on a very low price for Saab, but the exact figures are still undisclosed.

One towering hurdle in front of the deal is financing - the consortium, led by Koenigsegg Group, has yet to completely lock down funding as it is waiting on a hefty 4.3 billion kronor (about $593 million) loan from the European Investment Bank. The money won't be cleared unless the Swedish government secures it. Needless to say, there are countless other smaller hurdles (including word of investors backing out) that need to be knocked over before the deal is sealed. As of now, GM Europe, Saab, and Koenigsegg Group are all withholding comment, but we expect an official announcement shortly.

[Source: Swedish Wire]REPORT: Saab deal between GM and Koenigsegg finalized originally appeared on Autoblog on Tue, 18 Aug 2009 09:29:00 EST. Please see our terms for use of feeds.



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