GOTHENBURG, Sweden — It's Geely versus Crown as buyout activity continues to swirl around Volvo, which Ford has been attempting to sell off as part of its own restructuring process. Ambitious Chinese automaker Geely acknowledged a month ago that it's looking to buy the Swedish automaker, reportedly for a sum close to $2 billion. Now a consortium named Crown, formed by former Ford executive Shamel Rushwin and former Ford director Michael Dingman, is looking to make a competing bid, the Financial Times and others reported on Monday.
The Crown bid is underpinned by private-equity funding from U.S.-based groups, and the consortium is also looking for Swedish investors as well. Volvo has made no secret of its desire to keep the company as Sweden-based as possible. Citing an "informed person," the Financial Times said the Crown offer is "significantly less" than Geely's bid. Both parties reportedly will offer to invest $3 billion or more in the company once a buyout deal comes to fruition.
The paper also reported that a Swedish group called the Jakob Consortium is attempting to raise the needed financing to make a bid for Volvo, so far without success. This group, led by the head of the Volvo engineers' union, Magnus Sundemo, and former Volvo CEO Sören Gyll, is talking with the Crown consortium about a tie-up, according to the Swedish Wire blog.
Formal talks are expected to get underway in the next several weeks. The Financial Times noted that Ford's major concern in the sale will be protection of its own intellectual property.
Inside Line says: A deal — of some kind, with somebody — appears closer for the sell-off. — Laura Sky Brown, Correspondent
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