Geely to bid for Malaysian car maker Proton and Lotus.

Chinese automaker Geely is expected to bid as early as this week for a strategic partnership with struggling Malaysian car maker Proton, two people familiar with the bidding process told Reuters. As part of its pitch following discussions with Proton's owner, Malaysian conglomerate DRB-Hicom, Hangzhou-based Geely, which owns Sweden's Volvo, is expected to offer Proton some of the latest vehicle technologies it has developed with Volvo's input.

DRB-Hicom said earlier this month it was waiting for prospective foreign car makers to submit bids for a strategic partnership. Proton, founded in 1983 by former Malaysian premier Mahathir Mohamad, received 1.5 billion ringgit ($451m) in government aid a year ago on the condition that it implement a turnaround plan and seek a foreign partner to help its research and development. Other potential bidders have included Peugeot maker PSA, Japan's Suzuki and French car maker Renault. In response to Reuters requests for comment, Mahmood Razak, DRB-Hicom's head of strategic communications, said: "We have nothing new to say," noting a previous statement about it being a complex process. It has said it expects to announce a decision in the first half of this year.

"We are evaluating the bids received. No disclosures until we have selected a FSP (foreign strategic partner)," he added.

A Geely spokesman declined to comment.

It was not clear whether Geely's pitch - part of what the sources said was the final bidding round - includes a cash offer for a stake in Proton. The people with knowledge of the bidding said Geely is looking for at least a 51 per cent stake.

Source: http://www.drive.com.au