Geely Threatens to Drop Proton Bid

Zhejiang Geely Holding Group Co. may abandon its bid for struggling Proton Holdings Bhd because of indecision by the Malaysian carmaker about terms of a deal.

“They haven’t decided what they want,” Geely Chairman Li Shufu complains to Bloomberg News.

Proton received a 1.5 billion-ringgit ($337 million) government bailout loan last year with the proviso that it find a financial partner by this summer. Geely and PSA Group both have submitted bids.

Proton’s owner, DRB-Hicom Bhd, says it intends to remain a “substantial shareholder” in Proton. Geely and PSA reportedly want management control of the company, whose market share in Malaysia has dwindled to 15% from roughly 70% in the 1980s.