Talks are continuing between the German
government and the three bidders for Opel -
Fiat, Magna and RHJ - with negotiations between
the former two being most intense due to the
complexity of their bids. "Fiat and Magna
have submitted more complex blueprints,"
government spokesman Ulrich Wilhelm told
reporters today.
The third bidder is Brussels-based private
equity house RHJ International which is regarded
as the outsider.
With
intense negotiations having gone on throughout
the weekend, German government ministers' met
again this morning in a meeting chaired by the
Chancellor, Angela Merkel. She said during a press
conference afterwards that the proposals were changing on a daily basis
and that the talks were continuing with all three bidders.
Merkel and Economy Minister Karl-Theodor zu
Guttenberg, who is spearheading the drive to
find a major investor for Opel, met in secret
yesterday afternoon with the management of Magna
International, claimed the German daily
newspaper Bild this morning, reports
AGI. The newspaper claims that job
guarantees and the restitution of loans promised
by the government to the buyer of Opel were on
the agenda, with Merkel and Guttenberg trying to
obtain more concessions particularly regarding
redundancies.
Bild confirmed that the Austro-Canadian
components manufacturer is still the preferred
bidder of the German government. The plan
presented by Magna includes a cut of 2,850 jobs
in Opel plants in Germany and the request for a
government guarantee of 4.5 billion euros.
According to the newspaper, if Magna turns out
to be unwilling to make more concessions, the
second option of the German government would be
controlled insolvency. According to sources in
Magna's management the group is willing to
compromise with the German government and to
improve its offer. Bild also revealed
that Sergio Marchionne will visit Berlin
tomorrow to meeting Guttenberg again. The
Financial Times Deutschland wrote this
morning that tomorrow or Wednesday the German
government will take a decision on the three
offers it has received.
Meanwhile Italian Premier Silvio Berlusconi is
convinced that the German government will make a
an objective assessment of the offers it has
received for the acquisition of Opel, reported
AGI this morning. He pointed out that he
doesn't want to interfere with the choice. In an
interview with CNN, the Italian premier
said that he is certain the three bids,
including the one made by Fiat, ''will be
assessed objectively'' by the German government.
''They will pick the one they think is best. I
don't think they prefer one company to the
other. I think they will to what they think is
best for Opel''. CNN then asked if the
prime minister has discussed it with Merkel.
''No'' he responded, ''I haven't spoken with
Merkel, I don't want to interfere, but I know
her and I know that is what she'll do.''
Italian Industry Minister Claudio Scajola
reckons that Fiat's takeover proposals for Opel
are "more complex" than its recent negotiations
with American carmaker Chrysler LLC due to the
looming German general election which is making
the subject of job losses a very politically
sensitive issue. The "elections in Germany,"
make the bidding process more complex, commented Scajola
during a forum on energy which took place in
Rome today. Scajola, who last week called on
Fiat to ensure all its five key Italian
factories remain open if a merger with Opel goes
ahead, also told reporters today that he will
meet with Fiat senior management in the "coming"
days to discuss the future of its Italian
facilities if the Opel merger gets the green
light.
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