2nd UPDATE: Opel Adviser Says Sale Of Co Might Take Longer
29 Juni 2009 - 4:45PM
Dow Jones News
The advisory board chairman of the trust overseeing General
Motors Corp.'s (GM) Adam Opel GmbH unit, Fred Irwin, said Monday
that it might take longer than initially planned to finalize the
German automaker's sale.
"This shouldn't be viewed as a fire sale...All serious bidders
should get access to the same information," Irwin said at a press
briefing in Frankfurt, adding that it remains difficult to predict
a concrete timeframe for a final decision.
Irwin said that deals like that usually take between seven and
nine months to be finalized, adding that he hopes the deal can be
completed within his six-month tenure.
"But it could take longer than that if needed," Irwin said.
The president of GM Europe, Carl-Peter Forster, said earlier
this month he expects a definitive agreement to be reached by
mid-July, with the closing of the deal to be completed by
September.
Irwin said the time is running out for any potential new
investor to join the bidding process in addition to the companies
who have signalled their interest so far.
Irwin said Opel has cash reserves in the "low three-digit
million euro range." He declined to be more specific.
Last month, GM signed a memorandum of understanding for a sale
of a majority stake in Opel with Canadian auto supplier Magna
International Inc. (MGA), which has launched an offer backed by
Russia's Sberbank (SBER.RS) and automaker GAZ (GAZA.RS). But Irwin
noted that this isn't a legally binding agreement.
The agreement with Magna is backed by EUR1.5 billion in bridge
financing provided by the German government. As part of this
agreement, a trust led by Alfred Hagebusch, a Frankfurt-based
lawyer for German law firm Wellensiek, and GM Europe vice president
Eric Stevens has been established, which is overseeing Opel.
German Economy Minister Karl-Theodor zu Guttenberg said in a
interview with Austrian paper Der Standard published Sunday that
nobody can rule out that GM's talks with Magna might turn sour. In
his view, Magna's role as supplier to competing car makers
represents a risk to the planned deal.
Italian automaker Fiat SpA (F.MI) and China's Beijing Automotive
Industry Holding, or BAIC, have voiced interest in Opel, but the
status of their respective bids remains unclear.
Details of BAIC's bid haven't been released. Fiat Chief
Executive Sergio Marchionne last week reiterated the company's
interest in Opel, but said that Fiat won't come up with a new
offer.
Opel's supervisory board member and labor representative Armin
Schild told Dow Jones Newswires Friday that the powerful labor
union IG Metall still prefers Magna as new investor.
German weekly Focus earlier Monday quoted a spokesman for RHJ
International SA (RHJI.BT) as saying that it is out of the bidding
process.
Company Web site: www.gm.com
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512;
christoph.rauwald@dowjones.com