Koenigsegg backs out of Saab deal A group headed by Swedish sports car maker Koenigsegg has broken off negotiations over the purchase of Saab Automobile, the prospective buyer has said. "We regret that, after six months of intensive and goal-oriented work, we have come to the painful and difficult conclusion that we are not going to be able to carry out the acquisition of Saab Automobile," said company chief Christian von Koenigsegg in a statement. The collapse leaves thousands of jobs in western Sweden at risk - as well as the 4,000 people employed at the plant, many thousands of people work at Saab's suppliers. Tens of thousands around the world are employed in Saab dealerships. Speaking to Swedish news agency TT, von Koenigsegg added that the deal had collapsed because it had taken too long to reach agreement: "The way things look right now, we cannot complete the deal. The timeframe is unpredictable, there are too many processes that need to fall into place in parallel. Time has dragged on and not everyone has kept up. [...] Koenigsegg announced in September that it had teamed up with Beijing Automotive Industry Holding Co Ltd (BAIC) to buy Saab from GM. But it still needed a a €400 million ($600 million) loan from the European Investment Bank and wanted the Swedish government to act as a guarantor. [...] Koenigsegg Group takes its name from sportscar maker Koenigsegg Automotive, which was founded in 1994, has just 45 employees and produces 18 high-end sports cars a year at more than a million euros ($1.4 million) each. Koenigsegg Automotive is a minority shareholder in Koenigsegg Group, with other shareholders including BAIC, von Koenigsegg's holding company Alpraaz and Norwegian businessman Bård Eker. US businessman Mark Bishop, who was a shareholder when Koenigsegg Group was founded in June, is understood to have since sold his share in the company. [...]
A group headed by Swedish sports car maker Koenigsegg has broken off negotiations over the purchase of Saab Automobile, the prospective buyer has said.
"We regret that, after six months of intensive and goal-oriented work, we have come to the painful and difficult conclusion that we are not going to be able to carry out the acquisition of Saab Automobile," said company chief Christian von Koenigsegg in a statement.
The collapse leaves thousands of jobs in western Sweden at risk - as well as the 4,000 people employed at the plant, many thousands of people work at Saab's suppliers. Tens of thousands around the world are employed in Saab dealerships.
Speaking to Swedish news agency TT, von Koenigsegg added that the deal had collapsed because it had taken too long to reach agreement:
"The way things look right now, we cannot complete the deal. The timeframe is unpredictable, there are too many processes that need to fall into place in parallel. Time has dragged on and not everyone has kept up.
[...]
Koenigsegg announced in September that it had teamed up with Beijing Automotive Industry Holding Co Ltd (BAIC) to buy Saab from GM.
But it still needed a a €400 million ($600 million) loan from the European Investment Bank and wanted the Swedish government to act as a guarantor.
Koenigsegg Group takes its name from sportscar maker Koenigsegg Automotive, which was founded in 1994, has just 45 employees and produces 18 high-end sports cars a year at more than a million euros ($1.4 million) each. Koenigsegg Automotive is a minority shareholder in Koenigsegg Group, with other shareholders including BAIC, von Koenigsegg's holding company Alpraaz and Norwegian businessman Bård Eker.
US businessman Mark Bishop, who was a shareholder when Koenigsegg Group was founded in June, is understood to have since sold his share in the company.
