UPDATE:Germany:Friday Opel Meeting If Substantial Plans Provided
29 Mai 2009 - 1:02PM
Dow Jones News
Top-level talks between the German government, the U.S. and
investors to save General Motors Corp.'s (GM) Adam Opel GmbH from
insolvency will only take place if potential investors and GM agree
on relevant points and if "substantial" plans, such as a letter of
intent, are provided, the German government said Friday.
As a result, it's as yet unclear whether Friday's meeting
between the government, the U.S. and investors to rescue Opel would
take place, government spokesman Thomas Steg said told
reporters.
State secretaries will assess the state of the negotiations at
1200 GMT and it will then be decided whether the top meeting with
Chancellor Angela Merkel, government ministers, state governors,
GM, representative for the U.S. Treasury and investors would talk
place.
A meeting will only take place "if there's something to talk
about" and "if the participants will present something
substantial," Steg said.
At present, he expects the key meeting in the late afternoon to
take place.
He said that it's unclear whether further talks might be needed
but government officials would be available if meetings are
necessary over the weekend.
Germany early Thursday delayed a decision on providing
state-backed bridge financing to the Opel unit because GM on
Wednesday submitted a surprise request for at least another EUR300
million in bridge financing from the German government, on top of
the EUR1.5 billion already under discussion.
Steg said that the government would only back a bridge financing
up to EUR1.5 billion but no more. He also said a rescue of Opel
"won't take place at any cost."
Germany wants to safeguard jobs and production sites, but the
impact on German taxpayers is also a key criteria.
Steg also said that it was no surprise that Fiat will not attend
the meeting because Fiat isn't currently in talks with GM and the
U.S. government while Magna still is.
But this doesn't mean that Fiat is no longer interested in
bidding for Opel, Steg said.
By Andrea Thomas, Dow Jones Newswires; +49 (0)30-2888 410;
andrea.thomas@dowjones.com