UPDATE: Magna Consortium Still Aims To Close Opel Deal This Mo
02 Juli 2009 - 6:03PM
Dow Jones News
The consortium aiming to take over Adam Opel GmbH is still
intent on getting the deal through this month, although a previous
memorandum of understanding is being renegotiated.
Magna International Inc. (MGA) is actively pursuing a stake in
General Motors Corp.'s (GM) German unit, but the outcome of the
deal depends on GM, German Economics Minister Karl-Theodor zu
Guttenberg said Thursday.
The memorandum of understanding signed at the end of May is
being negotiated, zu Guttenberg said on the sidelines of an event.
"Those are the facts we have," he added.
Magna has said it aims to wrap up the negotiations by mid-July.
It has the backing of Opel's powerful union as well as German
politicians.
"That is an ambitious goal, but one shouldn't force the matter,
because there are lots of difficult details to clear up," zu
Guttenberg said.
The GM-Magna memorandum isn't legally binding, and there are
other buyers on the sidelines should the agreement sour. China's
Beijing Automotive Industry Holding Co. plans to present a bid for
Opel in the next few days, a person familiar with the matter told
Dow Jones late Wednesday.
GM has also had some discussions with RHJ International SA
(RHJI.BT), a private equity firm that was among the original
bidders for Opel in May. While speculation has circulated that
RHJ's chances may be better than previously thought, on Wednesday
the company reported a EUR1 billion net loss for the year ended
March 31 that cast doubt on its financial clout.
Despite the tentative nature of the GM-Magna agreement, the head
of Russia's OAO Sberbank (SBER.RS), which is financially backing
Magna's offer, said Thursday he sees no serious competition to the
bid, the Interfax news agency reported.
"The choice has been made," Sberbank Chief Executive German Gref
said. "We must now finalize the structure of the deal."
Russian auto maker OAO GAZ (GAZA.RS) is also a partner to
Magna.
Earlier this week, Magna's co-chief executive, Siegfried Wolf,
said he expected to sign a final deal with GM for Opel by July
15.
The agreement with Magna is supported by EUR1.5 billion in
bridge financing from the German government to keep Opel
afloat.
-By Sarah Sloat and Beate Preuschoff, Dow Jones Newswires, +49
(0)69 - 29725500, sarah.sloat@dowjones.com
(Christoph Rauwald contributed to this report)