RUFFIN PREVOST The Billings Gazette | Posted: Wednesday, June 10, 2009 12:00 am
CODY - A group of Wyoming investors is reported to be among three finalists bidding for Saab Cars, a Swedish unit of bankrupt General Motors Corp.
A report in the Financial Times lists Jackson-based Merbanco, a private investor group, as a bidder for the insolvent Saab. The report states that Swedish carmaker Koenigsegg and private equity firm The Renco Group are also bidding.
The Associated Press has reported that Beijing Automobile Industries Holding Co., China's fifth-largest carmaker, is positioning to make an offer if those three bidders can't close a deal with GM, which could happen as soon as Friday.
It is unclear how many individuals or firms are involved as part of Merbanco's bid.
According to public filings with the Securities and Exchange Commission, Christopher A. Johnston is president and chief executive officer of Merbanco, whose directors include his father, Richard P. Johnston.
Christopher Johnston did not respond to a message left seeking comment.
While Wyoming is known as a corporate tax haven and Jackson is a town where the wealthy often keep vacation homes, Christopher Johnston has been a resident for more than a decade, and has served on the Teton County School Board and the Teton County Recreation District Board.
Richard Johnston is a founding director for Georgia-based Agco, one of the world's largest manufacturers and distributors of agricultural equipment, including Massey Ferguson tractors.
Another Agco board member and Jackson resident, Thomas H. Wyman, has served as a director of General Motors, although he has not been named in reports of the Merbanco bid for Saab.
Formerly of Ohio, Richard Johnston is also a longtime director of Akron-based Myers Industries, a plastics manufacturer that specializes in parts for automotive, marine and commercial industries.
Myers Industries is the largest U.S. wholesaler of tools, equipment and supplies for the tire service and under-vehicle repair industry.
Published reports state that GM plans to finance the spin-off of Saab to new owners by providing $500 million in assets and cash, along with production equipment to be used for a new Saab model.
GM will provide $150 million in operating cash, with the new owner to repay the financing from any profits moving forward.
The Swedish government has said it will not guarantee a $700 million loan that Saab is seeking from the European Investment Bank without full details on the company's new owner and its plan for returning Saab to profitability.
Saab has been operating under protection from creditors since February, and has until Aug. 20 to complete a reorganization or sale. GM has set a target date of mid-June for disposing of the company.