GM runs due diligence on Saab bidders

By Jui Chakravorty Das

NEW YORK (Reuters) - General Motors GM.N is running due diligence on about 10 bidders for Saab, after the first round of bids for the Swedish brand attracted Chinese automakers, European investor groups and private equity firms, a source familiar with the matter told Reuters.

The Saab auction process is being run independently of GM's efforts to sell other European assets including Opel, the source said.

GM has until the end of June to sell Saab, the source said.

GM put Saab up for sale in February, and the brand filed for creditor protection shortly thereafter.

Saab, currently under reorganisation, aims to win court approval for an extended period of creditor protection on May 20.

Italian automaker Fiat (FIA.MI), which acquired a stake in Chrysler last week, has said it wants to merge its car unit with GM's European operations, which include Opel and Saab, to create the world's second-largest automaker after Toyota (7203.T).

But Fiat did not bid in the first round of the Saab auction, the source said. Fiat said on Wednesday it has spoken with the Swedish government about buying Saab, and GM responded by saying it would welcome any talks with Fiat.

GM, which has lost more than $82 billion (54 billion pounds) since 2005, has received $15.4 billion in federal funding and expects to receive up to $18 billion by June 1. It has said it may possibly need to to borrow up to $27 billion.