Mahindra & Mahindra readies bid for bankrupt Saab image

Mahindra and Mahindra has signed a confidentiality agreement with Saab and is in the process of finalising its bid, India’s Economic Times said on Tuesday.

Sources close to the deal said Mahindra and Mahindra is likely to tie up its bid in the next 15 days and Kotak Mahindra – which has earlier been the banker for M&M for several big deals, including Satyam – will probably be part of the Saab deal as well.

“We have received a few indicative bids,” Hans Bergqvist told reporters in an audio conference, adding: “the indicative bids are interesting.”

He repeated that there were four or five parties interested in buying Saab. He said most of them were from abroad but at least one was from Sweden.

Mahindra & Mahindra Limited is one of the largest automobile manufacturer by production in India and subsidiary of Mahindra Group conglomerate. The company was set up in 1945.

Saab filed for bankruptcy on December 19. It was already on the brink of bankruptcy when GM sold it in early 2010 to Dutch company Swedish Automobile (SWAN) — at the time called Spyker — for $400 million (308 million euros).