Magna International Inc. (MGA), together with Russia's biggest
lender, Sberbank (SBER.RS), has submitted a non-binding indicative
offer for General Motors Corp.'s (GM) Germany-based Adam Opel AG
unit.
Magna said the offer contemplates a total investment by Magna
and Sberbank of EUR700 million, a portion of which would be
guaranteed by the German government. Under the offer, the proposed
equity interests in Opel would be General Motors, 35%; Sberbank,
35%; Magna, 20%; and Opel employees, 10%.
Earlier this week, Fiat SpA (FIATY), Magna, and RHJ
International (RHJI.BT), a European buyout firm with holdings in
the auto-parts industry, presented their bids for Opel.
General Motors and the German government are reviewing and
considering offers submitted this week and will determine the next
steps in the sale process.
Magna said there is no assurance that any transaction will
result from Magna's current involvement, though the latest comments
from Germany, where Opel is based, suggest Magna as the
front-runner in the race to grab the assets. German politicians are
planning to continue to discuss bids for Opel at a meeting on
Monday.
In its release Friday, Magna didn't disclose the number of job
cuts its offer will require; however, the governor of the German
state of North Rhine Westphalia, Juergen Ruettgers, indicated that
under Magna's plan around 2,200 jobs would be cut at Opel's Bochum
plant, located in North Rhine Westphalia, and that Magna's plan
includes cutting around 10,000 jobs in total.
Magna, based in Aurora, Ont., is a global automotive
supplier.
-By Tara Zachariah; 416-306-2100; AskNewswires@dowjones.com