December 14, 2009 / 9:43 PM / 10 years ago

BAIC paid $197 mln for Saab assets - paper

STOCKHOLM, Dec 14 (Reuters) - Beijing Automotive Industry Holding Co (BAIC) paid 1.4 billion crowns ($197 million) to buy the intellectual property rights and equipment to make Saab’s 9-5 and 9-3 sedans, daily Dagens Industri reported on Monday.

BAIC, China’s fifth-largest automaker, said earlier on Monday it had acquired some assets of General Motors’ [GM.UL] Saab as part of a push to develop its own-brand cars.

“The purchase price is 1.4 billion crowns and the money was in Saab’s account already on Friday,” the paper quoted a source who was involved in the process as saying.

The money is enough to keep Saab running for three months, the source said, meaning there is no immediate threat of the company going under.

Saab, one of Sweden’s best-known brands, has been hoping an 11th-hour savior would turn up after parent GM said in late November it would wind down the firm if a buyer did not appear before the end of this month.

The deal with BAIC gives Saab breathing room to finalise a deal.

Luxury car maker Spyker SPYKR.AS has been tipped as the likely buyer and the Dutch company’s chief executive told Reuters on Sunday that talks with GM about buying Saab were continuing despite the BAIC deal.

For a timeline on Saab, click here: [ID:nGEE5AO18T]

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