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ReprintsReport: Bids for Volvo expected around Easter
February 25, 2009 - 4:00 am ET
STOCKHOLM (Reuters) -- Three interested parties may place indicative bids for Ford Motor Co's struggling Swedish Volvo Cars unit in April, Swedish business daily Dagens Industri reported on Tuesday.
The paper, citing undisclosed sources, said the interested parties were Chinese carmakers Dongfeng Motor Group and Chongqing Changan Automobile Co, and "a European constellation."
"Indicative bids are to be expected around the Easter weekend," the paper quoted a source as saying.
The paper said the European Investment Bank (EIB) was expected to grant Volvo a 5 billion Swedish kronor ($568 million) loan in the near future.
Volvo applied for the loan last month. The Swedish government has tasked Sweden's debt office with negotiating an agreement with the EIB which would enable the government to guarantee the loans. Ford bought Volvo for 50 billion kronor ($6.45bn) in 1999 following a bidding war with Volkswagen and Fiat. The brand was profitable at first, but, more recently, it has been in the red. Volvo, which is based in Gothenburg, Sweden, cut 6,000 jobs last year as part of its efforts to reduce costs. |
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