Dutch sportscar maker Spyker's chief executive said today talks on its bid to purchase Swedish brand Saab were proceeding well but negotiations could still "go either way".
Parent General Motors (GM) put loss-making Saab up for sale more than a year ago so it could focus on its own financial problems, but one deal collapsed and GM said it would end Saab production if a credible buyer could not be found by the start of this year.
Shares in Spyker have skyrocketed on speculation it was close to clinching a deal.
"Negotiations are ongoing and the spirit is positive, but we are very, very tired," Spyker chief executive Victor Muller said.
"It is such a complicated transaction. It's not for no reason it has taken so long. It is extremely technical," he said. "It can go either way, but you can rest assured we are doing everything to close the deal."
Spyker is now the sole bidder after investment company Genii Capital, backed by Formula One mogul Bernie Ecclestone, withdrew its offer yesterday.
Spyker shares were down 5.8 per cent at 11.38am, but are up more than 70 per cent since the start of the year.
Dutch financial authorities announced that trading in Spyker shares was suspended, without giving a reason, although this is sometimes done before a company announcement during trading hours.
Meanwhile, General Motors has also completed a restructuring plan for European unit Opel that could be signed by unions around the middle of February, finally allowing the company to cut around 8,300 jobs.
"I hope to get the plan finalised in two to three weeks," Opel chief executive Nick Reilly told reporters today.
Labour has frozen negotiations with management to contribute €265 million in annual wage savings over the next five years following their anger over last Thursday's announcement that Opel's Flemish plant would be closed.
"There is a hiatus in the talks because of Antwerp, but next Monday we will have our first meeting," Mr Reilly said.
In addition to the €600 million in fresh equity that parent GM has already contributed to Opel, Mr Reilly said he has requested €2.7 billion in state aid either in the form of direct loans or loan guarantees.
"Maybe we will not get the full €2.7 billion but I do expect we will receive a significant amount," he said.
All countries home to major Opel manufacturing operations remain open to extending state funding with the only exception being Belgium, according to Mr Reilly.
Until the long term financing is secure, Mr Reilly said that Opel had enough liquidity to operate "well into the second quarter" now that GM's centralised patent unit GTO advanced Opel €650 million in payments earlier this month for engineering work first due to be billed later this year.
Separately General Motors said today it plans to set up a $246 million facility backed by funding from the US government to build electric motors to power future hybrids and possibly pure electric vehicles.
The move is part of a push by GM and the Obama administration to develop technology for electric cars in the United States and cut into the lead by Asian automakers and suppliers in that potential boom market.
The first GM-designed and built electric motors are scheduled to appear in 2013 in rear-wheel-drive hybrid vehicles. GM said it would consider building motors in-house for a broader range of electric vehicles.
Agencies