Opel Owner Decided After German Elections?

Things remain uncertain for Opel, even if the battle for the majority package is now down to two bidders. With talks slowed down by a number of issues spotted in the takeover proposal, people are wondering whether General Motors is capable of selling the ailing unit before the German elections in September. John Smith, GM's chief negotiator for Opel, hopes a binding agreement is to be signed by the end of the month, but he still can't mention the name of the bidder favorite to buy the company.

Nevertheless, German Chancellor Angela Merkel struggles to secure a deal before the start of elections, and even announced that she would get personally involved in the negotiations. Furthermore, Merkel will travel to Russia on Friday to talk with President Medvedev on a number of topics, with Opel also on the agenda (Russian state-controlled bank Sberbank is the one who's backing Magna International in the race for the German carmaker).

Even so, RHJ, the Belgium consortium who has the first chance from GM's point of view, says a deal is unlikely before the German elections.

"We believe we have the offer that makes most commercial sense," said Arnaud Denis, RHJ's director of investor relations. "But it's difficult to surmise when this will be decided. There are some people who think this could drag out until after the German election."

Another important thing is that the current Opel management board is expected to remain untouched even if the German manufacturer gets a new owner. However, both Magna and RHJ already announced a number of changes, including product plans that are expected to revive the Opel brand a little bit and expand it into yet unexplored markets.