Magna to announce Opel takeover within five weeks
By Andrew C., 27 Aug, 2010. 0 Comments
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In a matter of five weeks Magna International and the state run Russian bank Sberbank will know if they will be finalizing their takeover of Opel. July 15 is the date set for finalizing the agreement that should serve as the basis of a contract. The governments of both Germany and UK have fueled speculations that another company could provide a better deal than Magna, a move that was seen as a political ploy to cause Magna to lower job losses in the event of a takeover.
Although neither GM nor Magna would confirm the timeplan, both are reportedly making significant progress in the latest negotiations, which include setting a license fee that Opel/Vauxhall will pay for access to the technologies of GM.
Other issues that need to be ironed out consist of where Opel can vend cars and who will be responsible for the estimated 4 billion Euros (3.4 billion Pounds) of risk in pension debts in the event when Opel file for bankruptcy. Fiat and Beijing Automotive Industry Corporation are two of the rival bidders who are standing by to see how the negotiations progress. [via autocar]
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