GM board delays decision

[rickaren]

GM board delays decision on Opel bidder

Posted Tuesday, Aug 4, 2009, 1:37 pm in Employee News

General Motors Co.’s new board of directors made no recommendation in favor of one of the two rival bidders for Opel, the company said on Tuesday and the Automotive News reported.

The board has been updated on the Opel sale process, but because talks are continuing with parts suppliers Magna International and Belgian investment company RHJ International, no recommendation has been made, GM said in a brief statement.

GM’s new board of directors was expected to choose one of the two bidders at a meeting on Monday evening, the trade paper said. A decision on which bidder will buy a majority stake in Opel will take some time, a GM spokesman told Automotive News Europe on Tuesday. (Automotive News)

[rickaren]

GM, Germany could decide on Opel buyer by weekend

Posted Wednesday, Aug 5, 2009, 1:49 pm in Employee News

General Motors Co. and the German government could decide by the end of the week which bidder they want to take control of the automaker’s Opel unit, Germany’s deputy economics minister said in a Reuters story.

Magna International and Belgium-based financial investor RHJ are locked in a takeover battle over Opel, the news service said. GM intends to relinquish control of the German car company in return for state support, Reuters said.

“We made significant progress,” Deputy Economics Minister Jochen Homann said after GM and government officials met with representatives from the two main bidders. “All the partners—GM, Magna and RHJ—confirmed that they saw themselves able to see eye to eye by the end of the week.”

GM, which holds 35 percent of Opel, and Germany, which will provide state aid, must agree on a buyer, but so far they have disagreed, Reuters said. Germany prefers the Magna offer, while GM has indicated it likes RHJ’s bid, the story said. (Reuters/Automotive News)