UPDATE:Germany:OK To Different Opel Bid Is Theoretical Option
05 Juni 2009 - 2:06PM
Dow Jones News
General Motors Corp. (GMGMQ) could "theoretically" sign a deal
with a different bidder for the carmaker's German unit Adam Opel
GmbH, government spokesman Thomas Steg said Friday.
But he said: "Negotiations with Magna are at a very advanced
stage."
GM is in talks with Austrian-Canadian car parts maker Magna
International Inc. (MGA) about an investment in Opel.
The German government said May 30 it selected Magna as a partner
for Opel and agreed on providing EUR1.5 billion in bridge financing
from the federal and state governments, paving the way for a
takeover by Magna and its two Russian partners.
Fiat SpA (F.MI) has also presented a plan to acquire Opel, as
has the U.S.-based investment group Ripplewood.
A Chinese bidder, Beijing Automotive Holding, has now also
presented a plan for Opel. A delegation from the company has told
the German government it is interested in a second chance should
the deal with Magna fail.
Steg also said the government and taxpayers won't take on the
billions of euros in pension burden for Opel workers, and Magna and
GM are still negotiating this issue. He also said the issue of
patent fees hasn't been included in Magna and GM's signed
memorandum of understanding.
Handelsblatt reports Friday that GM will be getting around
EUR6.5 billion for patents from Opel over the next 10 years, and
that the responsibility for Opel's estimated EUR4.5 billion pension
burden is an open question.
-By Andrea Thomas, Dow Jones Newswires; +49-(0)30-2888-4126;
andrea.thomas@dowjones.com