Bernie Ecclestone and Luxemburg investment bank Genii capital have dropped their join bid to purchase Saab from General Motors leaving just the Dutch car-maker Spyker in the running to purchase the troubled Swedish brand. It remains possible however that GM will simply wind down the company.
The investment group announced on 7th January a collaboration with Ecclestone, aimed at taking a majority stake in the firm. However, following a period of intensive study and evaluation, it concluded that it would not continue with the proposed purchase.
Genii Capital statement
"Saab is an exclusive brand with strong potential, based on the capabilities of a highly skilled workforce. This attracted Genii Capital to the opportunity to acquire a majority stake in Saab, based on implementing comprehensive, innovative industrial and financial foundations for the future in order to best meet the challenges the company will face in the future.
"Genii Capital was brought into the year-long bidding process for Saab just three days before the closing deadline. During this year, Saab Automobile AB had been engaged in a partial shutdown process as a result of the length of the negotiations.
"Genii Capital is in a position to move quickly and aggressively, but building solid partnerships for the long term demands both time and intensive work. Unfortunately, Genii Capital believes that the timing of the next stage of the shutdown process at Saab is not compatible with its requirements for putting in place a solid business platform for the future and closing the transaction.
"Genii Capital would like to extend its thanks to: its partners for their enthusiastic, dynamic and sincere commitment; those parties, especially from Sweden, who aided us in understanding the situation of Saab Automobile AB; GM for its cooperation and concern for the successful future of Saab Automobile AB.”