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German official: Magna still favored for bid Opel

German official: Magna still favored for bid Opel

Germany's government still supports the bid from Canadian car parts maker Magna International Inc. and Russian state-owned bank Sberbank for General Motors Co.'s German unit Adam Opel GmbH, Economy Minister Karl-Theodor von Guttenberg said.
Guttenberg also told the economic committee of Germany's Parliament that the government's available bridge loan funding to secure Opel operations in the interim is secure at least until January next year. Currently, Opel is being kept afloat by the ⁈llion ($2.1 billion) bridge loan provided by Germany.
Minutes of the parliament meeting held late Wednesday were released Thursday.
The government favors Magna, which has promised not to close any of the four Opel plants in Germany. But GM's board last week declined to choose between Magna and another bid from Belgium-based investment company RHJ International SA.
There has also been news media speculation that GM might not want to sell the unit at all, for fear that technologies could fall into competitors' hands and GM could lose valuable engineering resources.
Chancellor Angela Merkel said Wednesday that Germany's talks with GM remained focused on the preferred bid by Magna, but softened her insistence that the deal be reached swiftly, saying substance _ not speed _ was paramount.
GM released a statement Thursday but did not indicate when it expected a decision. "There are still some open questions that need further clarification. GM remains engaged in discussions with the interested buyers, the German government and labor leadership, and any solution must be suitable for all vested partners," the statement said.
None of the parties involved have indicated when a decision on the matter might be made, though Guttenberg's, Merkel's and other recent comments indicate any announcement could be drawn out until after German elections are held on September 27.
Under the terms of the deal being discussed, Magna and Sberbank would get a 55 percent stake in Opel. GM would hold onto a 35 percent stake and Opel workers would get 10 percent.
Just ahead of GM's bankruptcy, Adam Opel GmbH was transferred to a government-backed trust that holds 65 percent of the automaker, with GM holding 35 percent.
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On the Net:
http://www.opel.com
http://www.gm.com


Updated : 2021-05-14 19:54 GMT+08:00