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SAAB

Saab can still be sold: General Motors

General Motors announced on Friday it had begun "an orderly wind-down" of its Swedish unit Saab, but would consider any late proposals for the brand, in a move drawing protests from Sweden.

Saab can still be sold: General Motors

GM said it hired the consulting firm AlixPartners “to supervise the orderly wind-down of Saab, and has requested approval of the selection by the appropriate authority in Sweden.”

The US auto giant, in the process of a massive restructuring after bankruptcy last year, said the process for Saab “is expected to take several months, and will ensure that employees, dealers and suppliers are adequately protected.”

GM also confirmed that it has received “several proposals” for Saab and “is continuing to evaluate these proposals” even as it begins liquidation of the auto division.

Several groups, including Dutch sportscar maker Spyker and a group comprised of Formula One boss Bernie Ecclestone and Genii Capital, a Luxembourg investment firm, have said they presented GM with last-ditch bids to rescue Saab.

The head of Sweden’s influential IF Metall union, Stefan Loefven, blasted GM for moving to close the company at the same time as it is evaluating bids for the loss-making brand.

“It is irresponsible of GM as an owner to go in two directions, both pursuing the sale (of Saab) and the winding up,” Loefven said.

In addition to the bids disclosed this week, Swedish media also reported Friday that another group headed by Swedish businessmen was interested in acquiring Saab and scaling down its operations to build 45,000 to 50,000 cars a year.

In 2008, the last year for which figures are available, Saab sold 93,295 cars worldwide.

GM Europe’s spokesman Stefan Weinmann told AFP that the company was going ahead with the closure of Saab but at the same time considering any new bids.

“Essentially, the two processes will continue in parallel… we will look at the proposals and analyze them and see whether we can find a good solution for everybody,” he said.

GM’s actions regarding the Saab sale, which it put on the block a year ago, have been repeatedly criticized by the Swedish government and Saab’s unions, with questions arising over whether the US giant really intended to sell the unit.

“We will see what we can do, in order to, if possible, contribute to a positive sale of Saab,” Jöran Hägglund, Swedish enterprise ministry state secretary, told Swedish news agency TT.

He will be heading a Swedish delegation traveling to Detroit, Michigan, on Saturday to hold talks early next week with officials from GM and Ford, which is in the process of selling its Swedish unit Volvo to Chinese carmaker Geely.

Saab employs 3,400 people in Sweden and is among the brands being shed by GM as part of a massive restructuring effort that began in 2005 and accelerated last year when the largest US automaker went bankrupt.

Analysts have warned that some 8,000 jobs could be lost with Saab’s closure. The Swedish brand, which has been owned by GM for two decades, has been on the verge of extinction since GM said on December 18 it would wind down Saab, citing failed talks with Spyker.

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MONSANTO

Bayer buys Monsanto for $66 bn after months-long pursuit

German chemicals giant Bayer said on Wednesday it had signed a $66 billion (€58.8 billion) takeover deal with US seeds and pesticides firm Monsanto.

Bayer buys Monsanto for $66 bn after months-long pursuit
Photo: DPA

“Bayer and Monsanto today announced that they signed a definitive merger agreement under which Bayer will acquire Monsanto for USD 128 per share in an all-cash transaction,” the firms said in a statement.

Bayer repeatedly increased its offer to Monsanto since its first $122-per-share bid, but the US firm had until now held out for more cash.

“This represents a major step forward for our crop science business,” Bayer chief executive Werner Baumann said in the statement.

The two firms said that the deal “brings together two different, but highly complementary” businesses.

Monsanto shareholders still have to approve the deal, as do regulators – with Bayer staking a $2 billion reverse antitrust break fee in case the merger is rejected by US or European authorities.

The deal is expected to be completed by the end of 2017.

Bayer has been pursuing Monsanto since late May, when it made an initial bid of $122 per share (€109), valuing the US genetically modified (GM) crop giant at $62 billion. Monsanto rejected that bid, but said it was “open” to further talks.

Since then the German chemicals behemoth has raised its offer twice, first to $125 per share in July and then to $127.50 last week, but was rebuffed each time.

Mosanto held out for more money, calling the July bid “insufficient”.

The long-mooted tie-up has rung alarms bells for some farmers who fear the power of the combined company in the market for seeds and pesticides, while opponents of genetically-modified food in Europe worry about Monsanto's influence on the continent.

“We do not like this transaction, because we think that Bayer is overpaying significantly,” wrote analyst Peter Spengler of DZ bank on Wednesday before the deal was confirmed.

Monsanto's genetically modified (GM) seed offerings and Climate Corp data analytics offering to farmers would fit in with Bayer's crop protection lines, the firms said in the statement announcing the deal.

The combined group will also emerge with a total research and development budget of €2.5 billion. Added together, Bayer and Monsanto booked sales of €23 billion in 2015.

Bayer said that it expects synergy savings from the merger will allow it to add $1.5 billion to its underlying profit as measured by EBITDA within three years.

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