UPDATE: German Econ Minister: Still Need Improved Opel Bids
27 Mai 2009 - 5:31PM
Dow Jones News
Magna International Inc. (MGA) and Italian automaker Fiat SpA
(F.MI) still need to improve their bids for General Motors Corp.'s
(GM) Adam Opel GmbH unit, German Economic Minister Karl-Theodor zu
Guttenberg said Wednesday.
"At present, we have no such improvement that would allow us to
say this (concept for the future of Opel) is more sustainable than
previously," zu Guttenberg told reporters. "A considerable number
of questions remain open, with all investors. And Magna as well as
Fiat have to make concessions in some key areas."
A meeting late Wednesday would be a success if the German
government, state governments, the U.S. Treasury and GM agree on a
trusteeship model for Opel and if investors would be willing to
take on risks, he said.
"The main aim of the negotiations will be to limit risks which
the German taxpayer might have to take on as a result of bridge
financing or further guarantees," he said. "For this, a
considerable degree of accommodating is necessary, mainly from the
potential investors and the American government and General
Motors."
He said it can't be expected the German government will express
its preference for one single bidder later Wednesday but it might
be best to keep several investors in the game.
The U.S. Treasury and GM still have to answer several key
questions, he said.
"We urgently need this agreement with the U.S. side," he said.
"If this agreement can't be reached, the security of the model
isn't guaranteed. And if the security if the model isn't guaranteed
that we have no security for taxpayers. And in such a case, all
option are open, including an orderly insolvency."
Magna has teamed up with Russian automaker OAO GAZ Group
(GAZA.RS) and state-controled OAO Sberbank (SBER.RS) in its bid.
Financial investor RHJ International S.A. (RHJI.BT) has launched a
rival offer, while Chinese automaker Beijing Automotive Industry
Corp. (BAIC) emerged as a possible fourth bidder Tuesday.
Zu Guttenberg called the Chinese bid, which was submitted on two
pages, "upgradable" and said this would require time.
Commenting on the decision of Opel's supervisory board to
officially recognize the transfer of European plants, rights and
patents from GM to Opel, which makes a separation of Opel from GM
more likely, zu Guttenberg said this still requires an approval by
GM and the U.S. Treasury and that is why it would be premature to
laude the decision taken by the supervisory board.
Web site: www.bmwi.de
-By Andrea Thomas, Dow Jones Newswires; +49 (0)30 2888 4126;
andrea.thomas@dowjones.com