FRANKFURT (AFP)--Fiat SpA (F.MI) Chief Executive Sergio
Marchionne has denied preparing an offer for General Motor Corp.'s
(GM) Adam Opel AG unit while Fiat pursues its offer for part of
Chrysler, an Italian union source told AFP Friday.
GM Europe maintained its position that "there are discussions
with investors, but we will say nothing about the details,"
according to spokesman Joerg Schrott. "The situation is complex and
sensitive."
Several German politicians and union leaders have confirmed
talks between the German government and Fiat, in addition to
discussions with the Canadian auto parts maker Magna International
Inc. (MGA).
"Magna and Fiat are among the possible partners. There is
clearly no preliminary decision at the moment however," Hesse state
premier Roland Koch said.
Opel's headquarters are in the western German state, near
Frankfurt.
Thursday, Marchionne did not rule out an Opel offer, though he
stressed his priority was sealing a deal with distressed U.S. car
maker Chrysler.
Opel is seen as a national automotive symbol in Germany where it
employs almost 26,000 workers.
The company has been owned by GM for 80 years, though the U.S.
company has indicated it is ready to give up part of its
holding.
Opel's survival, which depends on an investor the government is
prepared to help, is crucial given general elections set for late
September.
Opel workers are wary of a tie-up they fear would lead to job
cuts.
Supervisory board member Armin Schild, who represents the IG
Metall trade union, has compared Opel and Fiat to "two sick
parents" who would not create a viable ensemble.
Pieper acknowledged that "between 5,000 and 8,000 jobs would
disappear" if Fiat bought Opel, but added: "That also means 20,000
would be saved."
He was convinced such a scenario "is the best solution for Opel"
because without GM it needs a partner to become big enough to
benefit from economies of scale.