UPDATE:German Ministry:Government Has Received 3 Bids For GM's Opel
22 Mai 2009 - 12:44PM
Dow Jones News
Three bids have been submitted for General Motors Corp.'s (GM)
German unit Adam Opel AG and it's now up to GM to decide which
investor it favors before the government can assess any offer,
German economics ministry spokesman Steffen Moritz told reporters
Friday.
Speaking at the same press conference, government spokesman
Thomas Steg said that the government's hasn't yet decided on a
frontrunner, adding that he isn't aware whether a Chinese investor
has also submitted a bid to GM, as a media report had
suggested.
He also said he explicitly wanted to "leave it open" whether a
meeting of German Chancellor Angela Merkel and key ministers as
well as the heads of four German states, which have Opel plants,
later this afternoon will generate a preliminary decision about any
of the bids.
So far, there is no frontrunner as far as the government is
concerned, he said.
Steg said the government doesn't believe it is appropriate,
given the situation, to commit themselves in advance of a
decision.
"That's why I can only tell you we are in a process and (that)
it's impossible to already give a ranking within the federal
government, because those politically responsible will look into
this issue extensively only from this afternoon," Steg said.
The head of the Hesse state government, Roland Koch, said
earlier Friday he favors the plan presented by Magna International
Inc. (MGA) for GM's Opel.
The government and the states of Hesse, North Rhine-Westphalia,
Thuringia and Rhineland Palatinate, which are home to Opel plants,
are mulling bridge financing for Opel if GM files for
insolvency.
Italian automaker Fiat SpA (F.MI) has submitted a formal offer
for Opel and Vauxhall. It plans to integrate GM's European, Latin
American and South African operations into a global alliance with
its own auto unit and Chrysler LLC.
Austrian-Canadian auto parts supplier Magna International Inc.
(MGA), jointly with Russian car manufacturer Gaz Russia (GAZA.RS),
have submitted a bid.
RHJ International (RHJI.BT), a European buyout firm of investor
U.S. Ripplewood with holdings in the auto-parts industry, is also
bidding for Opel.
According to a person familiar with the situation and who
declined to be named, Fiat has submitted a non-cash offer and wants
a state guarantee of around EUR7 billion and plans job cuts at four
Opel plants in Germany.
Magna, jointly with Russian car manufacturer Gaz Russia
(GAZA.RS), wants to get over 50% in Opel, plans to cut around
10,000 jobs in Europe and eyes up to EUR5 billion in state
guarantee, the person said.
Ripplewood also wants over 50% in Opel and wants less than EUR5
billion in state guarantees. It aims to keep the company
independent, possible in a cooperation with Magna, and eyes
thousands of job cuts, the person said.
Web site: www.bmwi.de; www.bundesregierung.de
-By Andrea Thomas, Dow Jones Newswires; +49-30-288-8410;
andrea.thomas@dowjones.com