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Saab struggles to survive

Chinese investors say Saab deal still stands

Published tisdag 25 oktober 2011 kl 10.38

The Chinese partners to Saab,Youngman and Pang Da, now say the agreement to invest in the struggling car maker that was signed this summer still stands, reports Swedish Radio News.

According to the contract, the two Chinese companies were to invest some 335 million US dollars in return for 53,9% of the shares in Swedish Automobile, the parent company to Saab. But the owners of Saab said they were cancelling the contract because Pang Da and Youngman have not transferred all the money they had promised as a bridge loan.

But the two Chinese companies say today they will deliver on their promises and want to help Saab get the capital they need.

Swedish Automobiles' share price rose over 10 percent on the Amsterdam stock market in reaction to the news.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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