Britain Ready to Help Opel/Vauxhall Takeover

As the negotiations between Magna International and Opel came to a dead end, the United Kingdom government stepped in front of the media and announced its support for the German brand and its sister Vauxhall. Although Business Secretary Peter Mandelson refused to provide too many details on the matter, he didn't deny the support could come in the form of loans or funds.

"I'm not going to discuss the detail of any financial underwriting, but it may involve loans or loan guarantees," he was quoted as saying by Reuters. "We would obviously have to have interest paid and some security (for the loans). This is taxpayers' money we are dealing with and a lot of it."

Meanwhile, negotiations continue in Germany, with country's officials revealing the talks also include other interested parties beside Magna International, such as BAIC and RHJ International. Deputy Economics Minister Jochen Homann demanded interested bidders to set up detailed business plans that would comply with European Union guidelines.

"Every day that there is no restructuring costs money, every month that goes by is a lost month," said Homan. "We will see whether Magna's concept is successful. It is based on theories over which one can heartily discuss ...There are justifiable question marks."

But Magna expects to resolve all the issues with Opel by July 7, an insider revealed a few days ago, which would allow the Canadian-Austrian parts manufacturer stick to its initial plans to close the deal by mid-September.

"They came significantly closer to one another in the key points," a source familiar with the matter told Reuters. "The only remaining issue is whether 'New Opel' gets the sales distribution rights to GM's Chevrolet brand for the Russian market, but a solution should be achievable here," another person added.