Bidder for Swedish carmaker Saab pulls out

Nov 24, 2009, 15:48 GMT

Stockholm - The sale of Swedish carmaker Saab was halted Tuesday after the potential buyer said it had pulled out of talks.

Saab's current owner, US group General Motors (GM), confirmed the announcement by the Koenigsegg Group AB - which had previously expressed an interest in buying the firm.

'We're obviously very disappointed with the decision to pull out of the Saab purchase,' GM Chief Executive Officer Fritz Henderson said in a statement.

'Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week,' he added.

GM earlier this year said it planned to shed the Swedish subsidiary, as part of a sell off which was originally to include German subisidary Opel too.

GM earlier filed for bankruptcy protection for a six-month period.

During that period a consortium structured around the Koenigsegg Group, a low-volume Swedish sportscar maker launched into talks to buy Saab.

'We regret that after six months of intense and focused work we have reached the painful and difficult decision that we will not be able to go ahead with the purchase,' Christian von Koenigsegg, chief executive of the Koenigsegg Group, said in a statement.

The consortium in September announced plans to include Beijing Automotive Industry Holdings (BAIC) as a minority owner.

GM's interest in Saab - one of Europe's smallest carmakers - dates back to the early 1990s. The company took full control in 2000.