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NINETY EIGHT REGENCY

Germany Open To GM Keeping Opel - Government Source

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Germany Open To GM Keeping Opel - Government Source

(A report, "2ND UPDATE: Germany Open To GM Keeping Opel - Govt Source" published at 12 p.m. EDT misspelled the first name of Jonathan Todd, spokesman for the European Commission's competition arm. A corrected version follows.)

FRANKFURT -(Dow Jones)- The German government would be open to General Motors Co. keeping its German unit Adam Opel GmbH, provided GM invests its own capital in Opel, a government source told Dow Jones Newswires Thursday.

The idea of GM keeping a majority stake in Opel has emerged in recent days as talks among GM, Opel suitors and the German government have failed to produce a deal.

The auto maker, looking to offload a majority stake in Opel, has been negotiating for months with Austrian-Canadian car parts maker Magna International Inc. (MGA) and Belgian investment firm RHJ International SA ( RHJI.BT). Any deal would have to be approved by the German government, which has extended loans to keep Opel afloat while GM looks for a buyer.

The German government has said it requires a private investor for Opel. Asked whether the government would consider GM a private investor should it decide to keep Opel, the person said: "As long as GM would invest its own capital in Opel, the government would consider GM a private investor."

This person added that the government considers it "legitimate" for GM to sound out alternatives for Opel, including the option to keep the German car maker.

more at link:

http://money.cnn.com/news/newsfeeds/articl...53_FORTUNE5.htm

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What if GM allows RHJ to invest its capital and then GM buys/merges Opel back? What if GM decides that it won't need a partner for Opel? The German government knows it put itself on a perilous position by insisiting on backing the Magna offer, now they're doing the PR-bull$h! dance... the idiocy surrounding Opel is proof that election years really turn politicians into a bunch of headless chicken... Sept 27th can't arrive quickly enough so GM can announce whatever decision they have on Opel, and end this soap opera....

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What if GM allows RHJ to invest its capital and then GM buys/merges Opel back? What if GM decides that it won't need a partner for Opel? The German government knows it put itself on a perilous position by insisiting on backing the Magna offer, now they're doing the PR-bull$h! dance... the idiocy surrounding Opel is proof that election years really turn politicians into a bunch of headless chicken... Sept 27th can't arrive quickly enough so GM can announce whatever decision they have on Opel, and end this soap opera....

:deathwatch:

As The Wheel Turns

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