PANGDA Automobile Trade Co (601258.SH) said today it dropped a takeover bid for Saab Automobile AB after the Swedish carmaker applied for bankruptcy.

Pangda will prepare to claim its right as one of the debtors as it has already paid 45 million euros (US$59 million) as pre-payment for its bid attempt, the company said in a filing to the Shanghai Stock Exchange today.

Earlier this year, Pangda and Youngman have agreed to buy all of the shares in Saab, potentially saving the 60-year-old company from bankruptcy.

Saab Automobile filed for bankruptcy on December 19, giving up a desperate struggle to stay in business after previous owner General Motors Co blocked takeover attempts by Chinese investors.

Saab Chief Executive Victor Muller personally handed in the bankruptcy application to a court in southwestern Sweden, ending his two-year effort to revive the carmaker that over more than six decades has become known for its rounded sedans and quirky design features.

China's Geely Automobile last year acquired Swedish premier carmaker Volvo from Ford while China's SAIC Motor Corp bought the assets of bankrupted British carmaker Rover in 2005.