In an unexpected turn of events, the economy minister of Germany has reopened the auction of Vauxhall and Opel, thereby effectively throwing Magna International's bid into uncertain ground. The German official has announced that Magna only provided them with a memorandum of understanding which has yet to be converted to a final deal.
Since there is no way for them to be certain that the memorandum can be translated into a final agreement they have opened the auction to other bidders in case it does not, although they are keeping their fingers crossed that Magna will push through.
Some however have speculated that this could be an arm twisting strategy by the German government to force Magna to finalize the deal with a low casualty count with regards to job cuts and factory shut downs. Others say that there are better offers that are really being considered.
The two companies that joined the bidding process, Fiat and the Chinese firm BAIC, are currently contemplating further bids.
It was previously agreed that Magna was to purchase 55 percent stake in Vauxhall and Opel at 700 million Euros and has already provide in excess of 300 million Euros of emergency aid to prevent GM Europe from sinking.
Magna has reportedly received an offer of state funding from the British business secretary in exchange for assurance of job security.