Sign in to follow this  
Followers 0

REPORT: Spyker stock soars on word of Saab sale reconsideration

1 post in this topic

Filed under: Europe, GM, Saab, Earnings/Financials, Spyker


Here's the skinny: Saab isn't totally dead yet. As the weekend showed, there's (a little) hope for both Saab and its Dutch suitor, Spyker. As our man Ramsey laid out yesterday, Spyker submitted a renewed eleven-point plan to General Motors that they (Spyker) hopes will allow them to take ownership of the deeply troubled brand. And yes, being pronounced dead four days ago counts as "deeply troubled." As Swedish Prime Minister Fredrik Reinfeldt pointed out, all this dead/not dead uncertainty has been throwing Saab employees, "between hope and despair."

Meanwhile, a (perhaps) unintended consequence of Spyker's eleventh hour rebid is that their stock has soared up 23.5 percent. Now, as some of you well know, Spyker isn't very big. They sold just forty-three cars last year and their market cap was just 26.6 million euros before the stock shot up. Still, if Spyker plays their cards right, this spike in value could have long term benefits, but only if they secure a deal for Saab.

Says one anonymous analyst to Reuters, "The stock's value is close to nothing but if they succeed to buy Saab, invest, and turn the company around then the shares can become valuable." Trouble is, GM only has until 5:00 pm EST today to sell Saab. For we're not sure why, but Spyker is making this a very limited time offer. If we had to guess, it's in order to force a deal. For its part, General Motors is "reviewing several new expressions of interest" for Saab, one of which according to Saabs United is Merbanco.

Should the Spyker deal (and all other deals) fall through, 3,400 Swedish workers will lose their jobs, and the 1,100 Saab dealerships worldwide will be forced to shutter. The Swedish government is in crisis talks with Saab officials right now should such a worst case scenario transpire. As for now, the Saab remains the same - i.e. mostly dead. One last thing, here's an interesting reflection on the demise of Saab by AB pal Jack Baruth.

[sources: Reuters; Saabs United; Speed:Sport:Life | Image: Gabriel Bouys/AFP/Getty]

REPORT: Spyker stock soars on word of Saab sale reconsideration originally appeared on Autoblog on Mon, 21 Dec 2009 14:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments


autoblog?i=_2VJhOA-J2o:dTjPfBOhwmA:wF9xT autoblog?i=_2VJhOA-J2o:dTjPfBOhwmA:V_sGL

View the full article

Share this post

Link to post
Share on other sites

Your content will need to be approved by a moderator

You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   You have pasted content with formatting.   Remove formatting

×   Your link has been automatically embedded.   Display as a link instead

Sign in to follow this  
Followers 0