Endeavour Advisory Group
August 19, 2011 in News
We like to give everyone the latest news here. Sometimes (a lot of times) we’ll hear whispers that we can’t possibly report on, because they’re likely to harm Saab’s deal making in some way or form. But tonight, we have a very weird and unorthodox story that’s breaking.
This story comes to us not from a Swedish paper, but from one that covers Asia-Pacific deals. The subject of the piece was primarily about venture capital deals in Hawaii from a particularly young private equity firm based in New York, that just opened new offices in Colorado, California, and Sweden. Endeavor Advisory Group confirmed to PBN (Pacific Business News) that they’re working on a deal with Saab. David Khalizad, a name we most likely will be getting very familiar with in the next day or so, is CEO of Endeavor, and admitted to PBN, “I must say, you guys look like geniuses,” when they figured out the deal after publishing their original article, confirming that it was true that they’re in talks with Saab. The oddest part is that this is part of a much larger project aimed at Environmental Pojects. Since PBN figured it out from Khalizad, Endeavor all but confirmed it themselves, by posting the PBN article on their website:
In the next 60 days or so, Endeavor plans to announce transactions that will be valued at hundreds of millions of dollars, Khalilzad said.
Those announcements aren’t likely to include any Hawaii companies, but it’s looking to move pretty fast with renewable-energy projects in this state.
One of Endeavor’s first investments could be in the cash-strapped Swedish auto maker Saab, though Khalilzad wouldn’t identify the company beyond saying it’s a Swedish auto maker. It is also working with companies in Germany and Arizona on renewable-energy projects.
Mysteriously, this quote mentioned in PBN’s blog by Duane Shimogawa has been removed from the Endeavor website:
“Swedish Auto Giant Saab Automobile AB has hired Endeavor Advisory Group as investment banker to raise the company $350 million Euros in debt financing,” Endeavor Chairman and CEO David Khalilzad said. “We are very pleased that Saab Automobile AB has chosen Endeavor and Saab CEO Victor Muller said it is great to work with Endeavor Advisory Group.”
So that’s that folks. It’s not a quick fix (60 days), it’s not detailed yet, but it’s certainly being handled by the best in the business. Americans are sitting on trillions in cash, waiting for solid investments on the cheap to take advantage of. Saab seems ripe for the picking. Some might say the cat is out of the bag, others might say the rabbit is popping out of the hat. I’m not going to go into much more about it, and I’m not even going to hint whether or not this story jives with what else I’ve heard. All I can say is, the rabbit seems like he’s ready to come out of his hat again.
All credit to Jason on this one for finding the story.
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For those of you unfamiliar with private equity groups, they’re basically cool investment arms for super rich people and institutions. David happened to run a very, very successful one, Geneva Capital Corporation, and has since gone on to found Endeavor. More about David Khalizad, from Endeavor’s website:
David Khalizad, Founder, Chairman
David Khalilzad began his financial services career at Citigroup in 1987, rising to Vice President, Real Property Services in charge of Commercial Real Estate. In 1990, he started his investment banking career at Morgan Stanley, one of the nation’s leading global financial institutions, becoming Senior Vice President in 1995. In 1997 Mr. Khalilzad founded Geneva Capital Corporation, where he served as Chairman and CEO for thirteen years. He was also founder and Chairman of U.S. Ethanol Holdings, which owned six ethanol plants in Illinois, Indiana, and California with a capacity of over 600 million gallons per year. Mr. Khalilzad is an honors graduate of the Department of Economics and Political Science, New York University, where he received the prestigious Founder’s Day Award in 1987.
No office location in Sweden is given on Endeavor’s website, though their Colorado and California locations are listed. Their global headquarters in New York on Park happen to be a few blocks from my office (and Jason Castriota’s new office too), so we might all have to stop over for a visit soon.
SAABoy said on August 19, 2011
Wow!!!
scand said on August 19, 2011
“you guys look like geniuses…..”
Huh? For figuring out which of 2 Swedish car companies needed debt financing?
I’m sorry, but financial engineering ain’t gonna save saab.
Jeff said on August 19, 2011
From my interpretation of Duane Shimogawa’s article where he confirms it, it’s part sarcasm and part sequencing (the confirmation of Saab involvement was a follow up not in the original article, but personal contact with David). All in all, I’m impressed that Pacific Business News could do what hundreds of news starved Swedish journalists couldn’t. They’re not looking so hot at DI or TV4 right now, but I can assure you they’re scrambling.
Pedro said on August 19, 2011
I agree 100% that further leveraging is worrying (especially in a World where since 2008 companies have worked hard in order to deleverage), but I’m waiting to see exactly what kind of debt instruments are used in this deal…
zippy said on August 19, 2011
Windmills? Maud would be pleased.
But on a serious note this is very interesting news.
Took my car on a 250mile jaunt today which made me appreciate what brilliant cars they really turn out in Trollhattan. Cleared my head a little too.
SAABoy said on August 19, 2011
Same here Zippy. 240 miles in the 9k aero @ 75mph average. a little over 33mpg :0 of course gas station calculations would be more accurate over longer distances, but 240miles is probably long enough.
JasonPowell said on August 19, 2011
Thanks Jeff, I’m just glad it seems to be falling into place and heading in the right direction.
Jeff said on August 19, 2011
No thank you for keeping me on my toes
.
63mk said on August 19, 2011
Renewable energy , ethanol, saab
maanders said on August 19, 2011
Renewable energy and Saab, I like! Ethanol…..not so much. But hey, anything that helps Saab at this point is a good thing.
Frank Wulfers said on August 19, 2011
I was researching this news story as well. I contacted Duane Shimogawa about this statement supposedly being posted on Endeavor’s website. He replied saying he couldn’t find it anymore either.
Jeff said on August 19, 2011
I did the same Frank. Funny how things disappear so quickly. This wasn’t supposed to be public info yet, but PBN outed the story, not us.
Greg Abbott said on August 19, 2011
This is not weird or unorthodox – this is a straight news report about a possible deal we all know has to be in the pipeline. My guess is this is the EIB loan replacement given the environmental angle of this investment group.
I’d bet real money that Victor has something else lined up, too, to cover the 60 day gap before this deal closes.
Jeff said on August 19, 2011
What’s weird is that the news has been out there but unreported by the Swedish journalists for some time now while they trash talked the board. Usually they jump all over these stories, so when a Hawaiian business daily catches it way before they do, that’s certainly strange. Also, what’s strange is how this news leaked out so far in advance of a press release, while sounding like it was right out of one. My best guess is that Endeavor’s communications staff is seriously new at this game, and messed something up. Oops.
zippy said on August 19, 2011
Now that would be great news getting the EU Politburo out of Saabs’ face for good.
TTAero said on August 19, 2011
VA anyone?
mihow1 said on August 19, 2011
Endeavor posted the PBN article in their “News and Events” section, so it does seem like they’re in talks with Saab
mihow1 said on August 19, 2011
Here’s the link:
mihow1 said on August 19, 2011
http://www.endeavoradvisorygroup.com/news-2011-08-12.aspx
saabdog said on August 19, 2011
Sounds promising. Just hope it doesn’t turn into rabbit stew.
Chris Hansel said on August 19, 2011
Ha, to all you doubters out there. Saab is a brand name, that spells high end engineering and marketing. MV understood this from day one.
That other people also do, is now clear. This is not another Oldsmoblie end game. Saabs will be build by someone, somewhere in the future. It is an international brand name of great value. Bean counters don’t always get it right.
Trued said on August 19, 2011
Just woke up, sunshine outside and promising news here at SU. The US Saab convention today might be one he…l of à party!
ryanonsrc said on August 19, 2011
Man, I wish I could be there ….
KarlR said on August 19, 2011
Rumors! Until the money is in the bank its just rumors!
Saab232 said on August 19, 2011
I’d call it news, not a rumor.
turbokalle said on August 19, 2011
That`s the spirit!
(jeeeeze)
KarlR said on August 19, 2011
Saab232, That does Di aswell!! Rumors it is even if its good rumors. Wait until the money isin the locked account and the suppliers are getting paid.
Khrisdk said on August 19, 2011
That would make the Pang Da/Youngman deal a rumor too?
Jeff said on August 19, 2011
+1
Tripod said on August 19, 2011
KarlR,
How come you always reply to a comment to you by adding a comment to the blog post? It’s possible to use the reply link, at least for a few nested replies, and makes it easier to follow, especially if people go off topic. Using some mobile, pad or other gizmo? That said, you always address your comments, and that’s very nice.
Khrisdk said on August 19, 2011
It may be a rumor, but there is a difference to this rumor than to the rumors run by the swedish press lately:
Someone actually made a statement regarding this.
Jeff said on August 19, 2011
Let’s just say I would never have posted this if I didn’t also have some backstory…
KarlR said on August 19, 2011
Khrisdk, How do you know its a real statement since there is no pressrelease or link anymore?
But I hope its true
KarlR said on August 19, 2011
Tripod, Its not possible on the mobile version to reply. Thats why.
Tripod said on August 19, 2011
I guessed that. Good to know that people follow SU wherever they are, out and about, in the sky or on the ground.
Pedro said on August 21, 2011
What phone do you use? Safari on my company iPhone shows posts chronologically, but there’s a button to turn off the mobile view which I assume (I have never tried it) takes me to the blog’s standard layout… Maybe you have a similar option on your phone?
saablover said on August 19, 2011
We need production now, our customers who are waiting for delivery won’t take another 60 days !!!!!
turbokalle said on August 19, 2011
Let`s hope, as Mr Abbot states above, that VM has something else cooking for the short run.
I`m a customer waiting for my car. It`s supposed to be delivered late september (95 SC) so I`m still hopefull, although I don`t mind waiting another day or two
This is however great news!
Pedro said on August 22, 2011
A question to saablover: Have any of your clients who have ordered cars (and, I suppose, paid deposits in orer to secure their place on the orders book) withdrawn their orders?
Aero said on August 19, 2011
Just want to quote Stephan Lövgren from his article in Göteborgs Posten this Tuesday in reference to the latest money taken from GEM Fund.
“There is a positive perspective on this situation especially among the enthusiasts at saabsunited.com. That positive perspective is that this (money from GEM) is just a plan B and just a temporary solution until the real Deal is in place. How much one wants to believe that this is the case it is still difficult to believe it.”
Well Stephan – let’s see who was right.
Christian said on August 19, 2011
To me this, finally, does absolutely make sense. Saab and renewable energy/fuels (ethanol!!!) belong together like nothing else. What Saab needs in order to become a successfull car manufacturer again – at the sight of the dramatic loss in confidence into our brand on the markets due to the latest issues – is a uniqe selling point (USP). Saabs great experience with and their broad range of biopower models ist just that. For me, at least, this was the main reason to buy a Saab. GRIFFIN UP!
martinsaab said on August 19, 2011
What a start into the day! Driving top-down to work in great weather – and now this news!
Keep my fingers crossed that everything works out fine…
Jos said on August 19, 2011
The agony… Sometimes i reallyhate these times of internet, viral media and instant news… I would have loved to hear the news for the first time when the deal is signed, like in the old days, with a TV news item of VM and whoever holding up a signed agreement, smiling to flashing cameras and happily responsing to questions at a press confeence…
Audun said on August 19, 2011
Where is the picture of the rabbit pulled out of the hat? I loved to wake up to it.
Jeff said on August 19, 2011
I think he’s coming back for a cameo once the press release goes out.
GrumpyGriffin said on August 19, 2011
That’s if he does not die of starvation first?
Khrisdk said on August 19, 2011
Some rabbits are extraordinarily longlived…especially those in hats..
GrumpyGriffin said on August 19, 2011
Not if they are in my garden!
Audun said on August 19, 2011
@ GrumpyGriffin: But I guess the rabbit now is in another garden.
Audun said on August 19, 2011
I look forward to see this rabbit again!
Audun said on August 19, 2011
…, and I hope it will be soon.
saabdog said on August 19, 2011
I hope someone doesn’t pull out the “Holy hand grenade of Antioch” and throw it at the rabbit!
Khrisdk said on August 19, 2011
What’s Up Doc?
GrumpyGriffin said on August 19, 2011
Only if you mean mixed with some vegetables, but I will give you a clue, its not eating them!
Pedro said on August 19, 2011
Bunny stew? Now I’m hungry… Thanks a lot!!!
Jake said on August 19, 2011
I joke with my rabbit like that all of the time… But my rabbit is also proteted by a nuclear arsenal, and VM has asked me to ship him over to Trollhattan. xD
MeanSabean said on August 19, 2011
Gentlemen, the Fat lady has just sat down and won’t be singing for a long time!
great news!
zippy said on August 19, 2011
And I heard Saab had just sent her in for gastric band surgery.
Jake said on August 19, 2011
lol Zippy
Bravada from GMI said on August 19, 2011
Ok, an “advisory group” founded in 2011 by somebody you haven’t ever heard of who previously worked for a “Geneva Capital” (there are literally dozens of companies by that name) has been HIRED by Saab to RAISE CAPITAL right after bankruptcy looms really near and suddenly a newspaper gets wind of it by some really tough investigational journalism… News? Perhaps… Credible change in Saab’s situation in view of what has been and is going on? Hardly…
Smoke and mirrors can only take one so far…
Pedro said on August 21, 2011
Can you please stop having such kind of doubts?
J/K, I agree with you. The whole story, as the Americans put it, plum stinks…
But seriously, now: SAAB just hired a consultant to find investors, i.e. fresh money, and anyone like you and me who takes 5 minutes to go through Endeavor’s website can see that these ‘news’ is nothing more than that. There is nothing more to these ‘news’, unless SWAN stock price movements and any insiders dealings in SWAN stock (which have to be reported to the Stock Exchange) show someone making good money out of SAAB’s misery.