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GM's Saab narrows talks with suitors to two: report

STOCKHOLM (Reuters) - General Motors Corp’ Saab Automobile unit has narrowed talks with potential buyers for the loss-making Swedish brand to two, Saab’s top executive was quoted as saying in a Swedish business daily on Tuesday.

“Now we are negotiating with just two parties,” Saab’s chief executive, Jan-Ake Jonsson, said in Dagens Industri.

Jonsson said final negotiations with one of those two potential suitors could start this week.

“This can go fast now and should absolutely be wrapped up in a maximum of two weeks,” he said in the report, adding a letter of intent with a “serious buyer” could be ready before mid-June.

The loss-making unit, put up for sale by its ailing U.S. parent earlier this year, said last week it would reveal its preferred candidate of the three undisclosed remaining bidders within weeks.

Local media, citing undisclosed sources, have reported the two front-runners were Swedish luxury carmaker Koenigsegg and U.S. financier Ira Rennert and his Renco Group, with Italy’s Fiat SpA as the third suitor.

The Swedish carmaker, which first sought protection from creditors in February, was granted an extension until August 20 in its reorganization process to line up a new owner and restructure.

GM filed for Chapter 11 bankruptcy on June 1, but said none of its operations outside of United States were included in the U.S. court filings.

Editing by Andre Grenon

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