[Feffman]

STOCKHOLM, Sweden, Jan. 24 (UPI) -- U.S. automaker General Motors is giving a reprieve to Sweden's Saab as part of a deal to sell it to Spyker Cars of the Netherlands, sources say.

Citing ""several people close to the negotiations," The Financial Times reported Sunday that GM will shelve plans to close Saab and instead sell it to the Dutch firm in a deal that could be announced as soon as Monday.

The newspaper said such a move would come as a great relief to Saab's 3,400 workers and to Swedish officials, who had mounted a spirited campaign to save the quirky and innovative car brand. A sale would also put Spyker, which manufactures luxury sports cars, firmly into the mainstream car industry.

A loser in the deal would be Formula One racing giant Bernie Ecclestone, who had partnered with Luxembourg private equity firm Genii Capital to mount a bid for Saab, The Financial Times said.

Autocar is Reporting:

GM is on the brink of selling Saab to Spyker, according to reports.

The Bloomberg news agency is reporting that financial terms have been agreed in principle between the two sides, and that ongoing production and management issues are the only remaining stumbling blocks.

One of these unresolved issues is the role of Vladimir Antonov, Spyker's Russian backer and company chairman, in Saab, who GM is reported to want to stand down. Another issue is the need for the Swedish government to guarantee a 400 million euro loan (£351m) from the European Investment Bank.

The report suggets Spyker will give GM $75 million (£47m) for Saab, while GM will keep another $100m (£62m) in current Saab liquidity, and $325m (£210m) in preferred shares from the new, Spyker-owned Saab company.

Reports suggest a deal could be announced this week

Perhaps and 11th hour reprieve.

Feff