F&I Management & Training

Shares in the small Dutch luxury car maker, Spyker, have risen by 29% amid new suggestions it will reach a deal with General Motors (GM) to buy Saab.

Last month GM said it had begun the process of winding down Saab, but would continue to try to look for a buyer.

Victor Muller, Spyker's chief executive has recently said he was "still confident" of signing a deal.

Spyker sold 43 cars in 2008 when it posted a loss of $35m (£21m). Its first offer to GM for Saab was rejected.

Six-year-old Spyker, which sold another 23 cars in the first half of 2009, has yet to make a profit.

Its shares were trading at 2.77 euros on the Euronext Exchange in Amsterdam on Monday.

Negotiations continue

Money for a deal to buy Saab could come from Spyker's largest shareholder, Russia's Conversbank Financial Group, or other shareholders.

It would also be likely to involve a large loan from the European Investment Bank, backed by the government of Sweden.

Spyker spokesman Mike Stainton said on Monday that reports of a deal were "speculation", but that the negotiations were continuing.

GM has begun the process of shutting Saab down, though its 3,400 workers in Sweden have not yet been laid off.

Another bid has come from a group including Formula One boss Bernie Ecclestone and Luxembourg-based private investment company Genii Capital.

Swedish union IF Metall, which has a representative on Saab's board, has criticised GM's decision to start the liquidation process while still continuing to explore a sale.