Geely says Saab, Volvo aren't cheap to buy

Shanghai, May 14 (Gasgoo.com) Chinese automaker Geely Auto has denied it is bidding for General Motors' Saab brand or Ford Motor's Swedish unit Volvo. Amid growing speculation about its move for either brand, Geely said overseas acquisitions are not cheap deals, the 21st Century Business Herald said today.

"The company has not submitted, and has no plans to submit, any bids concerning the takeovers of 'Volvo' or 'Saab' as stated in recent press articles," said Geely in a notice to the Hong Kong stock exchange last Thursday, when the company's stock price jumped 13.6%.

Geely, based in the east Chinese city of Hangzhou, is among several big Chinese automakers viewed as likely candidates to acquire Volvo or Saab. Geely executives reportedly visited Sweden earlier this year, further fanning rumors that it plans to bid for one or both of the Swedish automakers.

A top executive of Geely has told the Chinese business newspaper that the company's visit to the two Swedish automakers are part of its annual overseas "tour of study" that can help it learn more of the market. Geely will not spend a huge sum of money to buy them, unless they go bankrupt and sell cheap, but actually that is impossible, he said.

The executive revealed that after three "inspection trips," Geely's top management had a discussion about acquiring Volvo, but they have not discussed Saab yet. The discussion came to conclude that all executives, including its chairman Li Shufu, didn't think that their company should buy Volvo.

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