Magna Confirms Bid for Opel

After weeks of uncertainty, the Canadian-Austrian car company Magna International reckoned that it has submitted a bid for the German ailing brand Opel. Just as we told you in our previous coverage on the subject, Magna plans to take over Opel together with a couple of Russian investors that would bring them the majority stake in the German unit.

According to an official statement rolled out by Magna, the Canadian-Austrian company eyes a stake of 20 percent while Sberbank, the Russian partner of the company, will take over 35 percent of Opel. General Motors Europe will still hold a share of 35 percent, Magna said, while the remaining 10 percent will go to Opel’s employees.

Still, there’s no decision to be announced yet, as the German government, together with GM Europe’s officials, are still reviewing the proposal. Fiat last week also confirmed that it is interested in taking over the German manufacturer but, once again, a decision is yet to be confirmed. However, according to different sources familiar with the matter, GM Europe will officially announce the new Opel investor by the end of the month.

Here are some paragraphs from Magna’s statement rolled out today:

Magna International Inc. today confirmed that, together with Sberbank Rossii ("Sberbank"), it has submitted a non-binding indicative offer for Opel.

The offer contemplates a total investment by Magna and Sberbank of Euro 700 million, a portion of which would be guaranteed by the German government. Under the offer, the proposed equity interests in Opel would be: General Motors - 35%; Sberbank - 35%; Magna - 20%; and Opel employees - 10%.

General Motors and the German government are reviewing and considering offers submitted this week and will determine the next steps in the sale process. There is no assurance that any transaction will result from Magna's current involvement.