Geely Shares Hit All Time High — Volvo Bid Does The Company Well

Miscellaneous | Dean | October 30, 2009 at 01:29

Geely has been announced as the preferred bidder for the Volvo brand. The official announcement from Ford has now boosted the shares of the Chinese brand by about 4.5 percent. This increase has given the company it’s highest value ever since the first listing in 2004.

How Geely will obtain the brand, and handle it’s project we do not know.

“I think the market is still divided on the Geely deal,” Chen Qiaoning, analyst with ABN AMRO TEDA Fund Management was quoted as saying by Autonews. “If its parent indeed gets Volvo and the deal serves it well, the listed firm would benefit tremendously. But if they are unable to handle Volvo … the listed company will suffer.”

“Ford believes Geely has the potential to be a responsible future owner of Volvo and to take the business forward while preserving its core values and the independence of the Swedish brand,” Lewis Booth, Ford Motor Company executive vice president and chief financial officer said yesterday.