German State Secretary Doesn't Expect Opel Deal Next Week
July 08 2009 - 11:29AM
Dow Jones News
German State Secretary Jochen Homann said Wednesday that he
doesn't expect Magna International Inc. (MGA) to clinch a deal next
week to take over General Motors Corp.'s (GMGMQ) German unit Adam
Opel GmbH.
"An agreement between Magna and GM on a business plan" might be
reached next week at most, Homann told Dow Jones Newswires in an
interview, adding that this wouldn't mean that the deal is
finalized.
He said some open questions will persist, such as details on
financing and further examinations through the U.S. and European
governments.
In May, GM signed a memorandum of understanding to sell a
majority stake in Opel and its U.K. sister brand Vauxhall to Magna,
whose bid is backed by Russia's Sberbank Rossia (SBER.RS) and
automaker OAO GAZ Group.
The tentative agreement with Magna is backed by EUR1.5 billion
in bridge financing provided by the German government to keep Opel
afloat as parent GM filed for bankruptcy protection in the U.S.
Company Web site: www.opel.de
-By Beate Preuschoff, Dow Jones Newswires; +49 (0)30 - 2888
4122, beate.preuschoff@dowjones.com