Bidding GM's Opel Unit Heating Up; Offer Expected This Week
14 Julho 2009 - 6:34PM
Dow Jones News
Bidding on General Motors Co.'s Opel European unit is heating up
this week, with RHJ International SA (RHJI.BT) expected to offer
around $300 million for majority control in the car maker, a person
familiar with the situation said Tuesday.
The offer from RHJ International, a Brussels-based holding
company, is expected as soon as Wednesday. In addition, GM will
likely get a tweaked bid from Magna International Inc. (MGA), the
Canadian-Austrian auto parts maker that had previously been the
frontrunner, the person familiar said.
GM had anticipated Magna may drop out of the running amid
intensifying competition from RHJ and a third bidder, Beijing
Automotive Industry Holding Co. Ltd. Instead, Magna, which has
remained confident it would emerge as Opel's new owner, appears to
be readying a deal for this week, according to this person.
A Magna spokesperson couldn't immediately be reached for comment
Tuesday.
GM, which emerged from bankruptcy Friday with a pledge to become
a leaner, more profitable car company, is eager to offload its
struggling European arm. Magna in May signed a non-exclusive
memorandum of understanding to acquire a majority stake as part of
a bid backed by Russia's Sberbank Rossia (SBER.RS) and auto maker
OAO GAZ Group (GAZA.RS).
But the deal became shaky after RHJ and BAIC joined the
fray.
BAIC plans to invest in Opel in China to ramp up production
there by 2015, according to a document dated July 2 and reviewed by
Dow Jones. BAIC is offering $990 million in equity for a 51% stake
in Opel, with GM retaining a 49% stake. RHJ on Monday announced in
a statement that talks with GM were at an "advanced stage," but
didn't offer further details.
The Magna deal would include $2 billion in bridge financing from
the German government. Talks have stalled amid unresolved issues
including intellectual property rights and access to growth
markets.
The BAIC offer is attractive in that it involved fewer
government funds than the Magna arrangement. But GM remains wary of
turning the company over to what could become a key competitor in
China, on track to become the world's largest auto market this
year.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com