Magna Bid To Acquire GM's Opel Includes EUR500 Million Investment

Discussion in 'Stocks' started by stocks2009, Jul 21, 2009.

  1. Auto supplier Magna International Inc. (MGA) and partner Sberbank Russia ( SBER.RS) announced a revised offer to acquire a 55% stake for General Motors Co.'s European unit, Adam Open GmbH, including a total investment of EUR500 million ($713.1 million).

    Under the final offer announced Tuesday, Magna and Sberbank would evenly split their stake, while GM would retain a 35% interest and Opel employees would acquire 10% as part of a new labor framework.

    GM is selling loss-making Opel as part of its restructuring. The company has said it received final offers from three bidders for Opel. On Monday, the company confirmed it received rival bids from Beijing Automotive Industry Holding Co., owned by the Chinese government, and Belgian investment group RHJ International SA.

    Magna's bid is supported by the German government and bolstered by EUR1.5 billion in bridge financing provided by the German state to keep Opel afloat as GM filed for bankruptcy in the U.S.