General Motors Corp., shedding assets as it emerges from bankruptcy, is likely to select a buyer for Opel "early next week," according to the incoming head of its international operations.
Magna International Inc. and RHJ International SA are "probably the frontrunners" for the European unit, Nick Reilly, currently GM's Asia-Pacific head, said in a Bloomberg TV interview from Shanghai today. Reilly is set to take over all of GM's operations outside of North America next month.
Germany, which agreed to provide 1.5 billion euros ($2.1 billion) in short-term loans for Opel's sale, is pushing GM to pick Magna as the winner, two people familiar with the situation said earlier. While Brussels-based investor RHJ would cut fewer than 10,000 positions at GM's European factories, compared with 11,000 jobs proposed by Magna, that doesn't make RHJ's bid more attractive, German Deputy Economy Minister Jochen Homann said.
Magna "still has an edge" because it has been in talks with GM longer, Homann said in a telephone interview, after meeting with executives from RHJ in Berlin July 15. "RHJ is catching up in the process."
GM, which signed a non-exclusive memorandum of understanding with Aurora, Ontario-based car-parts maker Magna in May, has asked for final proposals from Magna and RHJ, said three people familiar with the situation, who asked not to be named because the bids are confidential. Beijing Automotive Industry Holding Co. may submit a final offer, while it's uncertain whether Fiat SpA will renew its bid, according to one person.
Full story
