GM Makes Progress in Opel Negotiations

Negotiations continue between General Motors and Germany on one side and Magna and RHJ International on the other and the American manufacturer says they're making a significant progress. However, General Motors hasn't provided specific details on the talks but said in a statement released today that Magna revised its proposal today and the company will review the documents in the next few days.

"GM has concluded several meetings with both Magna and RHJI, and with representatives of the German automotive task force. Progress has been made in clarifying issues from the best and final offers received two weeks ago. GM hopes to conclude its evaluation and make a recommendation to the Opel Trust Board shortly," GM said in a statement.

"This morning, Magna/Sberbank provided to GM and the German automotive task force revised draft agreements. GM will be reviewing these documents over the next few days. The automotive task force will be reviewing as well, as GM has requested from the task force an outline of the financing package that the German Government, and other European Governments, would support. When this outline is available, the options for Opel will be discussed with GM's Board of Directors."

Meanwhile, opinions are still divided on who's better for owning Opel. General Motors said, through the voice of its chief negotiator for Opel, that RHJ's bid is easier to implement and is much more advantageous for the German brand. On the other hand, Germany, together with Chancellor Angela Merkel supports Magna, whose offer is said to be the best Opel could get. Merkel even revealed this week that she would intervene personally in the negotiations and will travel on Friday to Russia to discuss with President Medvedev on the Opel takeover bid.