Spyker Agrees to Sell Formula One Team for $109 Million

Spyker Cars NV shares gained the most in more than a month after the Dutch maker of luxury sports cars agreed to sell its Formula One racing team to Indian billionaire Vijay Mallya for $109 million.

Spyker rose as much as 58 cents, or 11 percent, to 5.65 euros, the biggest intraday increase since July 24. The shares were up 7.5 percent at 9:42 a.m. in Amsterdam, giving the company a market value of 33 million euros ($45 million).

Mallya, who controls Bangalore, India-based brewer UB Group, has been granted exclusivity to proceed with due diligence, Spyker and Mallya said on Sept. 1. Spyker bought Midland Formula 1 Racing Ltd. last year from billionaire Alex Shnaider for $106.6 million. The racing team had a 13 million-euro loss in the first half, Spyker said.

Spyker dropped 12 percent to 4.61 euros on Aug. 28, the lowest since shares began trading, after the AD newspaper said creditors asked a court to declare the company bankrupt.

Dutch securities regulator AFM said on Sept. 1 it has asked the Amsterdam Court of Appeal's Enterprise Chamber for a revision of Spyker's 2006 financial accounts because of ``flaws.'' Spyker ``does not agree with the requests for restatement,'' the Zeewolde, Netherlands-based company said.

(Source: Bloomberg.com)