Struggling Saab Owner Refuses "Token Offer" From China

Saab

Swedish Automobiles, owner of Saab, has refused turned down a takeover from Chinese Zhejiang Youngman Lotus Automobile and Pangda Automobile Trade.

Chief executive Victor Muller told Reuters, “The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab.”

Muller did not reveal the details of the deal. Bloomberg reports that the deal had been hoped to save Saab, but Swedish Automobiles were taken aback by the token offer. Previous offers from the firms had amounted to 245 million euros ($338 million).

Last month Saab filed for bankruptcy protection after recorded losses of €152m ($220m) in its second quarter results, eventually winning protection after it was initially rejected.

US investment firm North Street Capital is pushing ahead in a $70 million deal hoped to save the troubled automaker.

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