GM to Reconsider Magna Opel Bid on November 3

General Motors' board will re-study the upgraded Magna takeover proposal on November 3 as part of the company's monthly meeting. Furthermore, the board will analyze Minister zu Guttenberg’s letter and decide whether the changes made by the Canadian - Austrian partsmaker in the terms of the deal comply with the its requirements.

John Smith, GM group vice president corporate planning and alliances (and GM’s chief negotiator for the sale of a stake in Opel/Vauxhall), said in a statement that the European Union has been reviewing the takeover deal since the US-based parent manufacturer agreed with Magna's proposal.

"Since the Trust Board approval was given, the European Union has been reviewing the Opel investor process and the circumstances surrounding the selection of Magna/Sberbank. Such a review is usual and customary when extensive government financial support is involved," he said.

"Last week, the Directorate-General for Competition expressed concerns about possible limitations on the availability of government financing for all Opel bidders, and how that may have influenced the selection process. The German Government was asked by DG Competition to communicate its position on financing availability to GM and the Opel Trust Board who, in turn, were requested to consider the recommended bidder for Opel accordingly."

Until GM reconsiders Magna's bid, the involved parties continue working with labor unions across Europe who have already expressed their disagreement regarding the proposed job cuts.

"In the meantime, work will continue to resolve remaining open points with the Magna/Sberbank proposal—for example, related to labor cost reductions and the government-backed financing package — to document the related understandings, and complete all preparations for the signing of binding agreements should that be authorized by GM’s Board at the November 3 meeting."
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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