UPDATE: VW Sees Conflict Of Interest At Magna After Opel Deal
June 03 2009 - 6:22AM
Dow Jones News
Volkswagen AG (VOW.XE) said Wednesday Canadian auto parts
supplier Magna International Inc. (MGA) will face conflicts of
interest following the planned takeover of General Motors Corp.'s
(GM) Adam Opel GmbH unit.
"Volkswagen will monitor this development very closely,"
spokesman Michael Brendel said.
Volkswagen, Europe's largest automaker by sales, is a direct
rival of Opel.
"Tax money has been used to a large extent for Opel's rescue. We
hope that through this a sustainable and successful result will be
achieved effectively," Brendel said.
Last week, the German government together with the German states
where Opel plants are located decided to support Magna's bid for
the Ruesselsheim-based automaker through bridge financing of EUR1.5
billion and keep it out of the bankruptcy filing of parent GM in
the U.S.
Magna has teamed-up with Russia's OAO Sberbank (SBER.RS) and OAO
GAZ Group (GAZA.RS) to take over Opel and boost its presence in
Russia.
Company Web site: www.volkswagen.com
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512;
christoph.rauwald@dowjones.com