Sberbank Confident Magna Will Buy Opel This Week

Sberbank, Magna's Russian partner who supports the Canadian - Austrian parts manufacturer into buying Opel, says the German government is expected to issue a final decision on the matter by the end of the week. Furthermore, Sberbank expressed its confidence that Germany will accept Magna's improved offer submitted a few days ago.

"The decision may be made even this week," Sberbank CEO German Gref was quoted as saying by just-auto.com.

According to recent media reports, Magna International is now offering 350 million euros to take over Opel but further details on the revised bid are yet to be revealed. "Magna is now offering 350 million euros of its own capital immediately. Furthermore, there should be a 150 million euro convertible bond," a government official commented on Magna's improved bid a few days ago.

What's interesting is that Magna last week made another offer for the German ailing manufacturer which it described as some sort of ultimatum, emphasizing that in case GM does not agree with its terms, it could leave negotiations. But it appears that Magna has come to its senses.

"General Motors is expected to review all submitted offers for Opel and determine the next steps in the sale process," the consortium said in a statement. "If the offer is successful, any transaction between the Consortium and General Motors would still be subject to finalization of definitive agreements and other conditions, including government-backed financing. Therefore, there is no assurance at this time that any transaction will result from the current involvement of Magna and Sberbank."

"If the Consortium is successful in completing the acquisition, Magna will put in place appropriate "firewalls" to ensure that its current business will operate independently from Opel."