General Motors, Spyker make progress on Saab deal in Stockholm

General Motors Co (GM) has made progress toward a revived deal to sell its Swedish Saab brand to Spyker Cars NV after negotiations in Stockholm on Friday, a Spyker executive and a second person with direct knowledge of the talks said.

Spyker chief executive Victor Muller told Reuters in a text message that he was "still confident" of reaching a deal to buy Saab, and that he was in negotiations with GM representatives in Stockholm on Friday.

The second source said the latest round of talks had opened the possibility that Spyker could demonstrate that its offer for Saab would be better for GM than simply shutting down the brand, a process GM started earlier this month.

A resolution to the latest round of talks between GM and Spyker could come as early as Monday, said the person, who asked not to be named because the negotiations are private.

GM had no immediate comment.

Terms of the proposed deal were not immediately known.

A news agency reported that Spyker had offered GM a combination of cash and preferred shares in a new Saab, worth $500 million, and said the two sides were in continued negotiations on other aspects of a deal, including production plans.

GM nominated two wind-down supervisors for Saab last week, but said it was also considering bids for the company, keeping the future of the iconic Swedish car maker uncertain.

A deal to sell Saab now would be the latest twist in a saga that began a year ago when GM first said it was looking to sell the money-losing brand.

The US auto maker began entertaining bids for Saab as its own financial problems deepened. In February, a Swedish court granted Saab protection from its creditors, while GM searched for a new investor for the brand.

GM had reached a preliminary deal to sell Saab to Swedish sports car builder Koenigsegg, but that plan collapsed in November.

Spyker, which sold 43 luxury cars in 2008 and posted a loss of about $35 million, has been pushing for a deal to buy Saab since December, even after GM rejected its initial approach.

GM executives have said the auto maker was open to negotiate with potential Saab bidders until it is clear that there is no prospect of reaching a deal. GM has continued its wind-down efforts on the brand even as the negotiations have continued.

GM is on track to cut its roster of brands by closing or selling Pontiac, Hummer, Saturn and Saab under a restructuring that included a fast-track bankruptcy in 2009, and more than $50 billion of US government aid.

Saab accounted for just over 1% of GM's global sales in 2008, the last year for which detailed results were available.