UPDATE:German Econ Ministry: No Frontrunners Yet For Opel Bid
May 20 2009 - 8:40AM
Dow Jones News
There is currently no frontrunner in the bids for General Motors
Corp.'s (GM) German unit Adam Opel AG and its European division,
and the government will examine openly any bids submitted before
1600 GMT, an economics ministry spokesman said Wednesday.
GM's European division said Wednesday it expects to receive at
least three bids from potential investors by 1600 GMT for the
group's European division.
The government is considering a credit line for Opel provided by
state-owned bank KfW and state-owned banks, Landesbanken, belonging
to the states with Opel plants.
"For the government, this is an examination with an open end.
There are no frontrunners," economics ministry spokesman Steffen
Moritz told reporters.
Italian automaker Fiat SpA (F.MI) plans to integrate GM's
European, Latin American and South African operations into a global
alliance with its own auto unit and Chrysler LLC.
Austrian-Canadian auto parts supplier Magna International Inc.
(MGA) has signaled its interest in GM Europe.
A person familiar with the matter told the Wall Street Journal
earlier this month that RHJ International (RHJI.BT), a European
buyout firm with holdings in the auto-parts industry, has also
emerged as a suitor for GM Europe.
Speaking at the same press conference, government spokesman
Ulrich Wilhelm said Wednesday's meeting of Chancellor Angela
Merkel, Vice-Chancellor and Foreign Minister Frank-Walter
Steinmeier, Economics Minister Karl-Theodor zu Guttenberg, Finance
Minister Peer Steinbrueck and Labor Minister Olaf Scholz on Opel
has been constructive.
"For now, we are awaiting the submission of the concepts by the
interested players - this is Fiat, Magna and others," Wilhelm said.
"For this, there is a deadline for tonight. The concepts will then
be quickly assessed and then, in the light of this assessment,
there will be further talks."
He also rejected report saying that three detailed bids have
already been submitted.
The future talks will be conducted with the cabinet members,
governors of the states that are home to Opel plants, with GM and
the U.S. government as well as with the European partners, Wilhelm
said.
He said he can't confirm reports that there will be a meeting
Sunday in chancellery with the same cabinet members to make a
decision on Opel.
Zu Guttenberg leaves the option open that he might travel to the
U.S. for further talks.
The government is currently considering a state-supported
trusteeship to keep Opel operating should GM enter bankruptcy
before Opel can be sold. This will also include a bridge, or
interim, financing from state-owned bank KfW and Landesbanken of
the states with Opel plants to keep the carmaker operating.
Web site: www.bmwi.de
-By Andrea Thomas, Dow Jones Newswires; +49-30-288-8410;
andrea.thomas@dowjones.com
(Christoph Rauwald in Frankfurt contributed to this item.)