We told you in the beginning of January that GM is planning to make a bid for Malaysian auto company Proton Holdings. Well today XFN-Asia reported that Volkswagen has signed an agreement of intent to buy a huge stake in Proton. Volkswagen is expected to buy up to 51% of Proton”s shares. GM, on the other hand, is ready to cash out as much as $2.85 for each Proton share, while the Malaysian Government, which owns Porton, says it is willing to sell equity for Proton and is talking to several car makers including Volkswagen and Peugeot Citroen.
Proton Holdings, which acquired Lotus in 1996, has been in trouble for a while and is need of partnership with a global car maker.