GM to sell Saab to Dutch sportscarmaker Spyker

Updated 7m ago
By Toby Sterling, Associated Press Writer

AMSTERDAM — General Motors says it has reached an agreement to sell its struggling Saab Automobile arm to the small Dutch luxury carmaker Spyker Cars.

GM has not specified terms of the deal, but a Wall Street Journal report citing anonymous sources says the sale price is roughly $74 million, and GM will retain preferred shares in Saab worth $326 million.

As part of the deal, the Swedish government will guarantee a euro400 million ($566 million) loan from the European Investment Bank to Spyker, the Journal says.

PHOTO GALLERY: More Spyker cars

The deal would be a coup for Spyker and a lifeline for Saab, which has around 3,500 employees in Sweden.

The sale of Saab is "great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM," said John Smith, a vice president at the company.

GM had planned to close Saab when it was unable to come to terms with Spyker and no other automakers seemed interested in buying it. But Bloomberg News said Monday that company officials met in Stockholm to review an offer by Spyker of cash and preferred shares.

Spyker said in a statement Monday that the two companies were in talks, but no deal had been reached yet

http://www.usatoday.com/money/autos/201 ... saab_N.htm