Opel talks prolong as GM undecided on Magna offer
22 August 2009
The future of General Motors' European division Adam Opel GmbH hangs in balance after GM's board was unable to pinpoint a suitable buyer for its German unit.
BBC reported that GM may prefer to exercise a buy-back option in the future, that could see it re-acquiring Opel and Vauxhall within a few years at an advantageous price - an option which may be unpalatable to any potential buyers
The German government is in favour of Canadian parts maker Magna International and its Russian partner Sberbank, as the bid is seen as the best to keep jobs at Opel.
But RHJ International, an investment company based in Brussels, remains in the running, and GM executives have said its offer might be easier for the company to support.
Germany, however, said it will not offer financing if GM chooses the RHJ offer.
Last week Magna said that it had reached an agreement in principle with GM management over a contract to buy 55 per cent of GM's European unit Opel (See: Magna submits revised offer to GM for Opel).