GM Confirms New Magna Bid for Opel

And here we go again... Just as we told you yesterday, Magna submitted a new takeover proposal for Opel that probably contains a couple of revisions to solve the issues Opel's officials told us about. Well, John Smith, GM Group Vice President (and GM’s chief negotiator for the sale of a stake in Opel/Vauxhall), confirmed today that the Canadian - Austrian parts manufacturer indeed submitted a new offer but strongly denied rumors that Magna is now favorite to buy the German unit.

"We did receive another offer from Magna/Sberbank yesterday morning and are reviewing it now. We’ll update the comparisons we made previously to the attractive proposal submitted by RHJI on July 20 and prepare for a review with GM’s Board of Directors," he said.

Just as we're getting used to, negotiations between the involved parties continue. And even if they favor different sides, Germany and General Motors says none of the two is in pole position for buying the ailing car manufacturer. Nevertheless, more and more sources are claiming that a decision should be made soon, probably before the German elections in September.

"We’ve also asked the German automotive task force to provide GM an outline of the terms and conditions of the financing package they and other European governments would make available to NewOpel. We expect to receive this outline soon, which will round out the materials needed for the GM Board review," Smith explained.

"After the GM Board makes its recommendation, the Opel Trust Board will be asked for its approval. So, there is more to consider, and more to do, before an agreement for Opel is reached."