UPDATE: Magna Supervisory Board To Discuss Opel Bid July 14
06 Juli 2009 - 3:52PM
Dow Jones News
Magna International Inc. (MGA) said Monday its supervisory board
is scheduled to discuss the company's bid for General Motors
Corp.'s (GM) Adam Opel GmbH unit at its meeting July 14.
Earlier Monday, Austrian daily Wirtschaftsblatt reported on its
Web site that Magna's board is due to meet on Opel next week,
citing supervisory board member Franz Vranitzky.
Wirtschaftsblatt said the deal was close to being finalized,
echoing remarks by GM Europe Chief Carl-Peter Forster over the
weekend.
In May, GM signed a memorandum of understanding to sell a
majority stake in Opel and its U.K. sister brand Vauxhall to Magna,
whose bid is backed by Russia's Sberbank Rossia (SBER.RS) and
automaker OAO GAZ Group (GAZA.RS). Opel's powerful labor unions
have voiced support for the takeover.
The tentative agreement with Magna is backed by EUR1.5 billion
in bridge financing provided by the German government to keep Opel
afloat after parent GM filed for bankruptcy protection in the
U.S.
Magna is seen as the frontrunner, but last week China's Beijing
Automotive Industry Holding Co. Ltd. made a concrete offer for Opel
in an effort to outpace Magna on the final stretch of its race for
the German automaker.
Company Web site: www.magna-europe.com
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512;
christoph.rauwald@dowjones.com