Negotiations over the sale of Vauxhall and Opel break down
By Andrew C., 27 Aug, 2010. 0 Comments
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General Motors, the parent company of Vauxhall and Opel made a last-minute request for a 300 million Euro emergency loan thereby breaking down the negotiations over the sale of the two companies. GM's unexpected cash request upturned the talks. Reports say that the government considered this as a bit of an outrage, with Belgium's RHJ having removed itself from the bidding process and Beijing Automotive Industry Corporation's bid, which came in late, is not being considered. Two bidders remain as a consequence: Fiat and Magna. The negotiations are expected to resume today and the German government expects sales to be finalized at the end of the week. The German's choice bidder is Magna and the Canadian company has said that it could provide GM's 300 million Euro loan if the German government can offer assurance it could get it back in case GM goes bankrupt. [via autocar]
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