综合一区欧美国产,99国产麻豆免费精品,九九精品黄色录像,亚洲激情青青草,久久亚洲熟妇熟,中文字幕av在线播放,国产一区二区卡,九九久久国产精品,久久精品视频免费

Economy

Markets

Industries

Insights

Reports

Events

Geely capital raising move may fund Volvo buyout bid

(China Daily/Agencies)
Updated: 2009-09-17 08:07

Geely Automotive, the Chinese carmaker whose parent is eyeing Ford's Volvo unit, is set to raise capital through a bond issue in a move that may provide funding for a Volvo bid.

Analysts, however, said the bonds could also be used for Geely to expand its car making capacity rather than to launch an immediate bid for Ford's $2 billion plus Swedish car unit.

Geely said last week its parent was considering a bid for Volvo with a local government-backed investment firm.

A successful deal would boost the profile of Geely, a small, homegrown carmaker and give it access to Volvo technology it needs to upgrade its cars.

Yet, some analysts have raised concerns about whether the Chinese carmaker will be able to make the acquisition work.

"The move is a bit of a surprise to the market," said Vivien Chan, analyst at Sinopac Securities Corp. "We had a meeting with the company before and they did not mention any funding needs."

In March, Geely bought Australian automatic transmission supplier Drivetrain System International for $40 million, but a company executive said that deal was paid for from proceeds of a share placement in May.

Related readings:  Geely, BAIC target foreign brands  China's Geely plans joint bid for Volvo  Geely to top 1 year sales target as H1 profits rise 145%   As Geely eyes Volvo, sales surge in locally made model  Ford posts $638m second-quarter loss

A spokesman for the listed company in Hong Kong said the suspension of trading in Geely shares yesterday was related to a "major transaction". He would not clarify further.

The Hong Kong exchange said the Geely suspension was pending an announcement related to a proposed issue of convertible bonds and warrants. No financial details were immediately available.

Geely shares have dropped more than 18 percent since hitting a life high early last week.

Geely, valued at around $1.68 billion, is working with British partner Manganese Bronze Holdings Plc to make and sell London's iconic black cabs in China.