Geely mulls pulling out from bid for Proton

Geely mulls pulling out from bid for Proton

KUALA LUMPUR: Shares of DRB-Hicom Bhd fell in late Friday trade on a news report that billionaire Li Shufu said he’s planning to pull Zhejiang Geely Holding Group Co. out of a bid for Proton Holdings Bhd.

At 4.50pm, DRB-Hicom, the parent of Proton, fell six sen to RM1.39.

Bloomberg reported Li as saying DRB-Hicom keeps changing its plans.

“They keep changing, today it’s this, tomorrow’s it’s that,” Li said in an interview in Beijing Friday, before attending the opening of the Chinese People’s Political Consultative Conference.

“They haven’t decided what they want.”

Hangzhou, China-based Geely Group and France’s PSA Group have submitted bids to buy a stake in money-losing Proton, which needs to bring in a foreign partner to help in research and development as part of conditions it agreed to in order to receive a loan last year.

Bloomberg reported that Proton CEO Datuk Ahmad Fuaad Kenali and a company spokeswoman both declined to comment on Li’s comments.

Last week, PSA CEO Carlos Tavares said last week that a decision on the Proton bid is expected in spring. Proton owns British sports car maker Lotus Cars Ltd.

 Source:The Star