What percentage of Opel of Germany is GM expected to own?”
Germany’s government rejected RHJ International SA’s improved offer for General Motors Co.’s Opel unit and reiterated its preference for Canadian car-parts maker Magna International Inc. “The preference for Magna remains even after reviewing this” new bid, German Economy Ministry spokesman Steffen Moritz said today at a regular news conference in Berlin. The German government, which has provided 1.5 billion euros ($2.1 billion) in loans to keep Opel afloat, is pushing GM to accept a bid by a group led by Aurora, Ontario-based Magna. Chancellor Angela Merkel’s government, facing Sept. 27 federal elections, has said it would provide 4.5 billion euros in guarantees to back Magna’s offer. RHJ said yesterday it agreed to inject more cash into the unprofitable carmaker and seek less in loan guarantees from Germany. “Germany isn’t going to change its mind on RHJ only because they improved their numbers a bit,” said Uwe Andersen, a politics professor at the University of Bochum, the western Ge
FRANKFURT: The US automaker General Motors on Thursday said it would keep 35 percent of the shares in its European Opel/Vauxhall operations and sell 55 percent to a Canadian/Russian consortium. Employees would own 10 percent of what GM called the “New Opel” following its sale to the Canadian auto parts maker Magna and Russian state-owned bank Sberbank. Several key issues still needed to be finalized, including the terms of a financing package provided by the German government, but the final documents should be ready for signing within a few weeks, and the deal should close within the next few months, a GM statement added. “Under the deal, Magna/Sberbank will purchase a 55 percent stake in New Opel; GM will hold a 35 percent stake and employees will be provided a 10 percent stake,” it said. After months of tough talks, GM finally agreed to sell the majority stake in Opel to Magna and Sberbank, a deal expected to save as many German jobs as possible and one that boosts Chancellor Angela
