China’s Pang Da says halts bid to acquire Saab
SHANGHAI, Dec 21 — China’s Pang Da Automobile Trade said today it would halt its attempt to acquire Swedish carmaker Saab in light of Saab’s bankruptcy.
Saab was declared bankrupt by a court on Monday, ending a nine-month survival battle by its Dutch owner.
“In view of Saab being declared bankrupt, Pang Da Automobile Trade has decided to stop the acquisition transaction of Saab,” Pang Da said in a statement to the Shanghai stock exchange.
Saab, which made cars for 64 years, has suffered cash problems since March after 2010 sales fell short of targets amid the disruption of its sale by General Motors.
Pang Da said in the statement that it would follow relevant procedures to try and retrieve the €45 million (RM186.8 million) advance it had given to Saab, but warned that it may not be successful.
Saab has not made any vehicles since April and several rescue attempts have failed. Saab owner Swedish Automobile said former owner and key licence holder General Motors had blocked a last-ditch rescue plan by Chinese investor Youngman.
As late as early December, Pang Da was optimistic about a rescue, saying it was still in talks with various parties including Saab on plans to invest in the firm. — Reuters