Spyker Stock Soars On Saab Speculation
Shares in the Dutch boutique automaker Spyker soared 23 percent today, reports Reuters, as the firm’s last-ditch bid for Saab goes down to the wire. Spyker, which sold only 43 cars last year and had a market capitalization of only €26.6m as of last Friday, will hear back from GM on its Saab bid by 5pm today. According to Reuters, Spyker has restructured its ownership structure in order to alleviate GM’s concerns about its backing from allegedly mobbed-up Russian financier Alexander Antonov. GM had previously canceled its Opel sale in part because of concerns about its latest technology landing in the hands of Russian investors. Furthermore, Spyker says it that its new offer eliminates the need for a European Investment Bank (EIB) loan approval prior to year end. “We’re very confident we have put forward a proposal that can convince GM in time,” says Spyker CEO Victor Muller. From a more sober vantage point, Swedish Prime Minister Fredrik Reinfeldt warns “we should be careful about fueling new hopes in a situation where the people in Trollhattan, and at Saab and their subcontractors are thrown between hope and despair.”
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Thuggery is more palatable when it's state-sponsored? I can't figure out why Spyker would want any part of Saab. At this point all that remains of the company is the brand name and a complex of buildings in Trollhatten. The tooling for the existing models has been sold to the Chinese and the future 9-5 is all GM IP which they are not going to want to part with. Spyker buying Saab is like an artisanal cheese-maker buying a Velveeta plant.
Unless Spyker has $1,000,000,000 dollars to re-fly the crashed Saab, this ain't going anywhere. Money tip: Sell short, cover the sale, and sit back for the upcoming crash.
I'm still hearing about this Spyker negotiation on the local news. Isn't the deadling today at 5pm? How long can they stretch this out? It's kind of sad for those poor Saab employees as they are grasping on for any hope.
It also sounds like Mahindra expressed some interest... sort of...