European labor representatives for General Motors Corp.'s (GM) Adam Opel GmbH unit are still in talks with Magna International Inc. (MGA) on Magna's planned takeover of Opel, German labor union IG Metall said Tuesday.

The union said the European labor representatives forum for Opel Europe rejected the current form of a memorandum of understanding that Magna presented for Opel, but the union hasn't completely rejected Magna.

IG Metall added that this could be expected and isn't an alarming move.

The comments come in response to a report in daily Rheinische Post that said Opel workers surprisingly pulled away from Magna. It cited Oliver Burkhard, head of IG Metall's operations in the state of North Rhine-Westphalia, as saying the European labor representatives unanimously rejected Magna's current takeover plan.

"There is no rejection from IG Metall to Magna and there is no one that formulated such a thing," Opel supervisory board member and labor representative Armin Schild said in a statement.

Labor union Web site: www.igmetall-bezirk-frankfurt.de

-By Frankfurt Bureau, Dow Jones Newswires; +49 69 29725 500; djnews.frankfurt@dowjones.com