M&A

25 November, 2009

Swedish govt says GM still hopes for Saab sale

STOCKHOLM, Nov 25 (Reuters) - A Swedish government official said on Wednesday that General Motors [GM.UL] appeared to still harbour hope of being able to sell its Saab Automobile unit after the wheels came off of a planned divestment this week.

"I talked to GM last night and my impression is that they have not given up hope," Joran Hagglund, state secretary at Sweden's Industry Ministry, told reporters.

Sweden on Tuesday effectively ruled out a state bailout of GM's loss-making Swedish Saab unit after tiny luxury car firm Koenigsegg pulled out of a bid for one of the Nordic country's best-known automobile brands. [ID:nGEE5AN2PR]

Finding a new buyer would be a race against time, Swedish Enterprise Minister Maud Olofsson acknowledged.

"For every day that passes the challenge gets bigger and bigger," she told reporters.

(Reporting by Johan Sennero; writing by Niklas Pollard)

((niklas.pollard@reuters.com; +46 8 700 1110, Reuters messaging: niklas.pollard.reuters.com@reuters.net))

Source: http://www.reuters.com