December 2, 2009 in News
I’m trying to keep up with the news, but the truth is, you guys in comments are much faster
The money quotes right now….
Henrik picked this one up from the press conference:
I recognised the reporter who asked the question he´s Swedish. He asked if the deal has to be finished in 30 days, or if the evaluation is for 30 days, and the GM official answered that the evaluation is for 30 days, if there is a viable buyer, then it will be persued!
Deal has more than 30 days then!
That’s good confirmation of how we thought things might run. GM will look over the bids until the end of the month and if one is viable then it seems they’ll allow Saab to operate to a date when that deal can be concluded.
David G Mills, who’s been an attorney for the last 32 years, summed up the encouragement we should all get from this decision, quite nicely:
This is standard language when a buyer is interested in what a seller has to sell. Obviously if there is more than one potential buyer, one potential buyer should not be able to find out what kinds of offers the other potential buyers are making.
This is quite positive. I take all of this to mean that GM found the potential buyers to be quite serious, financially credible, and quite capable of making a genuine, serious offer to purchase Saab in the very near future.
Obviously GM and its board of directors must do what is in GM’s best financial interest. If GM will lose less money on the sale of Saab than it will in closing down Saab, the board owes a duty to GM to go forward with the sale. If GM can actually cover its losses and actually make a profit on the sale of Saab, then there is no question a sale will go through.
The board is duty bound to the GM shareholders to look at any offer that is legitimate and that would work out to GM’s benefit. This is especially true because of GM’s bankruptcy.
I figured an extension of the decision to sell or close Saab would occur if the buyers were at all serious, financially credible, and capable lessening GM’s loss on Saab.
If I might add my own 2 cents here…..
This is a major, major turnaround from the GM board. Do not underestimate what’s happened today.
Word via Djup Strupe is that GM previously, some time back in October, had a clear plan internally that if something happened to the Koenigsegg bid, then Saab was toast.
This decision is a credit to Jan-Ake Jonsson for his presentation, a credit to joran Hagglund for his engagement, and most of all, a credit to one or more bidders who have presented sale scenarios that made the GM Board sit up and think.
Thanks for your contributions………