Swedish PM says Saab vulnerable after deal-report

Sat May 30, 2009 5:43pm EDT

* Swedish PM says Saab vulnerable after Opel deal

* Says new owner would face a big undertaking

STOCKHOLM, May 30 (Reuters) - Swedish carmaker Saab is in a difficult position after being left out of the deal by General Motors (GM.N) to sell its German unit Opel, Prime Minister Fredrik Reinfeldt was quoted as saying on Saturday.

"I believe that anyone who has followed this closely realises that this is a very vulnerable and difficult position that Saab is in," the local TT news agency quoted him saying.

His comments came a day after Germany sealed a deal with Canadian auto parts group Magna MGa.TO, GM (GM.N) and the U.S. government to save Opel from the imminent bankruptcy of its U.S. parent.

Saab, which was put up for sale by its ailing U.S. parent earlier this year, said this week Saab and GM would present its preferred candidate out of three undisclosed remaining bidders within the coming weeks.

Local media, citing undisclosed sources, have reported that the two front-runners in the bidding were Swedish luxury carmaker Koenigsegg and U.S. financier Ira Rennert and his Renco Group, with Italy's Fiat (FIA.MI) as the third suitor.

A local Swedish court has granted Saab a further extension of the period it is protected from creditors, giving it more time to restructure.

(Editing by Michael Roddy)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.