Solar Energy Firm Makes $1.2bn Bid for Opel
Terms of the deal make the transaction almost impossible, especially if taking into account that SolarWorld demands General Motors to pay compensation of 40,000 euros per Opel worker, which would total approximately one billion euros, exactly the amount of the total investment. Basically, General Motors would receive 1 billion euros from SolarWorld but would have to pay all these money back to the German firm in compensation payments.
"I could not be more serious," SolarWorld boss Frank Asbeck told AFP. "We would not make this offer otherwise. "Do you know the story of David and Goliath. Size has never been a decisive factor,” he added, pointing that even if his company is much smaller than Opel, it has the financial power to purchase the carmaker.
According to AFP, SolarWorld would offer 250 million euros in cash and 750 million euros in bank credit facilities, with the German solar energy company demanding four Opel auto factories and a key R&D center in Ruesselsheim, Western Germany. In addition, SolarWorld mentioned that Opel should completely separate from General Motors, in order to avoid any financial problem the US giant may experience.
General Motors recently said that Opel is not and won't be for sale in the near future but, taking into account the difficult period it has, the US-based company may consider a more realistic offer.