RHJ Offers 275 Million Euros for Opel

Making a final push for the acquisition of the German manufacturer Opel, Belgian financial investor RHJ offered 275 million euros for a 50.1 percent stake. Called "Project Beam", RHJ's non binding offer, obtained by Reuters, calls, as is the case with the other two bidders, BAIC and Magna, for both production and personnel cuts.

RHJ requires less government guarantees than main rival Magna: RHJ asks for 3.8 billion euro, while Magna needs 4.5 billion. The offer states that RHJ will contribute 175 million euros at the closing of a deal for Opel and an additional 100 million at the end of 2012.

The rest of Opel's shares will go to GM (39.9 percent), and Opel's employees (10 percent, n exchange for agreeing to contribute between 250 million euros and 300 million in savings per year).

RHJ would cut Opel's personnel scheme by about 9,000, close the Antwerp, Belgium plant in March next year and downsize the other four facilities.

RHJ projects net sales would rise from 16.9 billion euro in 2009 to 23.6 billion by 2014, with EBITDA pushing up to 2.5 billion.

Chances for the RHJ offer to go through are slim, despite the overall better proposal than Magna's. Earlier today, German chancellor Angela Merkel expressed Germany's support for Magna's bid.

"There are still a number of questions to be cleared up. But the Magna concept offers excellent starting points," said Merkel at a joint news conference with Russian president Medvedev. "It offers Opel a chance and also creates the possibility of establishing a strategic partnership in the car sector with Russia."