Shares in Dutch luxury carmaker Spyker soared today after the company made a new bid for General Motors's Swedish car brand Saab.
The partly Russian owned Spyker said yesterday it had lodged a renewed fast-track offer to buy Saab from GM just two days after last-ditch talks with GM over a rescue of the loss-making Swedish manufacturer collapsed. The offer from Spyker Cars expires at 10pm today.
Shares in Spyker Cars rose as much as 34.5 per cent and were up 26.9 per cent at €2.17 by 10.51am in Amsterdam as its renewed approach to Saab raised hopes the small Dutch firm may exponentially expand operations and perhaps become profitable.
"The stock's value is close to nothing but if they succeed to buy Saab, invest, and turn the company around then the shares can become valuable," said a Dutch analyst who declined to be named.
Abandoning the 60-year-old Swedish auto brand would eliminate 3,400 jobs in Sweden and hit 1,100 Saab dealers, but General Motors said yesterday it would evaluate several new expressions of interest for Saab.
Spyker, which Russian banking tycoon Vladimir Antonov holds an almost 30 per cent stake in, said yesterday it submitted a renewed offer including an 11-point proposal addressing issues that arose during the due diligence process.
Russian state-controlled Sberbank and Canada's Magna tried to buy a stake in GM's Opel unit until GM decided to keep it last month. Russia is keen to obtain Western technology to re-energise its local car industry.
"We're very confident we have put forward a proposal that can convince GM in time," Spyker Cars Chief Executive Victor Muller said.
"The jury's still out. We will see what happens next."
The new offer eliminates the need for a European Investment Bank (EIB) loan approval prior to year end, which would allow the deal to be concluded within GM's deadline of December 31st.
We can't comment on this deal as this is something between Spyker and General Motors," said Eric Geers, spokesman for Saab Automobile.
Paul Akerlund, local union leader at Saab in Trollhattan, said: "It's positive. It shows that there is a genuine interest in buying (Saab), but now the ball is in GM's court and I don't know how GM views this. That remains to be seen."
Spyker, maker of the C8 Aileron and D8 luxury sport-utility vehicle, got rescue financing in 2007 from Abu Dhabi's sovereign fund Mubadala, which holds 23 per cent of the company, while Spyker chief executive Victor Muller owns 10 per cent.
Reuters