Guess Why There Is a Trading Halt For SAIC
As reported here, GM’s and Volkswagen’s Chinese partner SAIC will halt the trading of its shares on Monday in anticipation of a major plan. The plan doesn’t appear to be fully hatched: According to People’s Daily, “SAIC will make an announcement on the plan in five trading days.”
But what’s that secret plan? Speculations by our commenters range from buying more of GM to buying Saab. One of the Best & Brightest appears to be close to the truth – as far as we can fathom at this point.
Global Times (owned by People’s Daily) today floats the rumor that “SAIC Group is mulling an asset restructure among its subsidiaries and some service-oriented assets which are still unlisted would be injected into SAIC while the group’s three independent auto parts companies would go to Huayu Automotive Systems Co Ltd (Huayu Auto).”
The give-away: Trading in Huayu Auto is also suspended.
As things stand now, nothing earthshaking is bound to happen. However, they will keep the suspense up until the end of the coming week.
Brightest and best? There's a first for every thing I guess... Now if you need someone to road test cars I'll be only to happy to help... ;-) I have my eye's on the super new Mclaren.....
Maybe SAIC wants to rid itself of low margin auto parts making like Ford & GM did. Then they can cross bid their ex-suppliers to create further "cost down" opportunities.