Saab Talks With Unnamed Chinese Bank

Just the Facts:

• Chinese distributor Pang Da apparently has dropped out of discussions to take a stake in Saab Automobile.
• Saab said Monday that it is "in discussions" with an unnamed Chinese bank.
• The Chinese bank, along with Chinese automaker Youngman Lotus, is talking about acquiring an equity interest in Saab's Dutch-based corporate parent.

TROLLHATTAN, Sweden — Chinese distributor Pang Da apparently has dropped out of discussions to take a stake in bankrupt Saab Automobile, which said Monday that it is "in discussions" with an unnamed Chinese bank and Chinese automaker Youngman Lotus to acquire an equity interest in Saab's Dutch-based corporate parent.

Saab declined to confirm media reports over the weekend that the state-owned Bank of China, the country's fourth largest bank, was negotiating to buy a stake of nearly 30 percent in Swedish Automobile.

In Detroit, General Motors on Monday told Inside Line that it had supplied Saab with an undisclosed number of 2011 Saab 9-4X crossover vehicles, but has not built or supplied any 2012 models.

In a telephone conversation, GM spokesman James Cain told Inside Line: "We have the same position as before. We're open to continuing to supply powertrains and components to Saab if the company is sold, but we're not prepared to grant new technology licenses or continue to supply the 9-4X."

GM in early November had opposed a plan for Saab to be acquired by Youngman Lotus and Pang Da Automobile, one of China's largest auto distributors.

On Monday, Saab said its corporate parent Swedish Automobile "is in discussion with Youngman Lotus Automobile and a bank in China" about taking an equity interest in Swedish Automobile.

A statement on Saab's global Web site said: "The discussions include a short-term solution to enable Saab Automobile to pay the November wages and continue reorganization. The outcome of the discussions is still uncertain. Any possible transaction would be subject to the approval of the relevant stakeholders."

GM sold the controlling interest in Saab in 2010, but continues to hold preferred shares in the company, which has been attempting to reorganize under bankruptcy protection in Sweden.

Inside Line says: Saab last week issued a depressing third-quarter report on Wednesday, raising doubts about its ability to survive in the long term. The company said it "foresees a substantial net loss for 2011."