GM's Opel Still Up for Grabs; BAIC Offer in Contention
By Michelle Krebs July 7, 2009General Motors is seriously considering an offer for its Opel unit in Europe from Chinese
automaker Beijing Automotive as talks with Canadian auto supplier Magna International and the German government continue.
BAIC made a non-binding offer for Opel this week that requires less government help, cuts fewer jobs and provides for expansion of Opel in China more than an offer by Canadian auto supplier Magna International.
The BAIC offer, which would give the new GM 49 percent and BAIC 51 percent of the new Opel, involves sharing of emission-reducing technology such as fuel cells and hybrids.
Meantime, GM and Magna are trying to negotiate terms of a previously announced deal. The Magna offer calls for Russian bank Sberbank to hold 35 percent of Opel along with Magna taking 20 percent.
GM executives were set to meet with German officials Tuesday to discuss the offers.
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Does the Magna offer have GAZ, GM, the German government, or a combination of the three holding the other 55%?
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