">Forum Views ()
">Forum Replies ()
Read more with google mobile :
Germany mulls new Opel takeover plan
Yahoo!
My Yahoo!
Mail
Yahoo! Search
Search:
Sign InNew User? Sign Up
News Home -
Help
Navigation
Primary Navigation
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Secondary Navigation
Search
Search:
Germany mulls new Opel takeover plan
AFP - Saturday, May 30
BERLIN (AFP) - - A deal to secure the future of General Motors in Europe and tens of thousands of jobs by selling a part of its Opel unit to Canadian car parts maker Magna hung precariously in the balance on Friday.
ADVERTISEMENT
An eleventh-hour takeover proposal thrashed out by GM and Magna was being studied at a crunch summit meeting in Berlin between top German politicians, representatives of the US government and the two firms.
Sources told AFP that there had been some "progress" in the negotiations but senior politicians downplayed the chances of a swift final agreement.
Although the decision on the fate of GM's European operations rests with Washington and GM itself, Berlin plays a key role as Opel employs 25,000 workers and the German government will have to stump up billions of euros (dollars) in loan guarantees.
"There are new plans from Magna who are negotiating with GM," Economy Minister Karl-Theodor zu Guttenberg told reporters as he went into the meeting.
"We will have to examine them at the same time."
But zu Guttenberg played down the prospects of clinching a deal on Friday, saying: "It is not yet certain that we will come to a decision today... those that believe we will have a solution in one or two hours are wrong."
Foreign Minister Frank-Walter Steinmeier, who is also vice chancellor, also stressed that a definitive deal could yet be a long way off.
"The situation has still not been solved. All parties need to be conscious of their responsibilities and I remain confident that a solution can be found," said Steinmeier, adding that saving Opel was "anything but simple."
Britain's Business Secretary Peter Mandelson, who is not involved in the meetings, told the BBC it was "pretty likely" that Magna would clinch a deal to snap up GM's European operations, which include Vauxhall in Britain.
Magna has teamed up with Russia's top bank, state-controlled Sberbank, for a bid that would see precious metals tycoon Oleg Deripaska's truck company GAZ making Opel vehicles in Russia.
It has been seen as the front runner in the race to win Opel from the beginning, winning the support both of unions and centre-left Social Democrat members of the governing coalition.
And its chances were boosted considerably earlier Friday as its last remaining rival -- Italian car maker Fiat -- dramatically pulled out of the talks at the last minute.
Fiat said it would not expose itself to "unnecessary and unwarranted risks" and that it had insufficient information on Opel.
"It is in fact unreasonable to expect... that Fiat would provide funds to an organisation whose financial details and position remain unknown to date," it said in a statement.
An earlier round of all-night talks collapsed acrimoniously on Thursday, with Berlin accusing GM and the US government of moving the goalposts at the last minute and using "scandalous" negotiating tactics.
GM suddenly demanded some 300 million euros (423 million dollars) more than expected in temporary bridging loans, on top of the 1.5 billion euros Berlin has already said it would provide.
The German government stressed earlier Friday it would not go beyond this 1.5 billion figure. "This is non-negotiable," government spokesman Thomas Steg told a regular briefing.
Berlin is also set to provide around 4.5 billion euros in loan guarantees if Magna wins the deal.
Chancellor Angela Merkel is under pressure from all sides to find a solution for Opel, with some 25,000 German jobs at stake just four months before a national election.
However, she is also wary of not being seen to throw away taxpayers' money.
She has not ruled out insolvency for Opel but said in an interview with Spiegel magazine's online edition that her government "was making every effort to find another way."
Merkel added: "A direct government stake in Opel is out of the question for me."
Friday's talks in Berlin were also meant to be about creating a trusteeship model that would keep Opel operating in the event of a GM bankruptcy.
GM employs about 55,000 people Europe-wide, including around 7,000 in Spain, 4,700 in Britain at Vauxhall, 4,000 in Sweden at Saab, 3,600 in Poland, 2,600 in Belgium and 1,800 in Italy.
Email Story
IM Story
Printable View
Blog This
Sign in to recommend this article »
0 users recommend
Enlarge Photo
German Vice-Chancellor and Foreign minister Frank-Walter Steinmeier answers journalists in front of the chancellery in Berlin ahead of a meeting about the future of car maker Opel. A deal to secure the future of General Motors in Europe and tens of thousands of jobs by selling a part of its Opel unit to Canadian car parts maker Magna hung precariously in the balance on Friday.
Most Popular – Top Stories
Viewed
Vitamin D boosts brain power in middle-aged men
Ancient eruption 'killed off world's sea life'
Talent judge defends singing sensation Boyle
Canada's governor eats raw seal heart
Chrysler, GM seek salvation
View Complete List »
Search:
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Privacy Policy
- Terms of Service
- Community
- Intellectual Property Rights Policy
- Help
Other News on Saturday, 30 May 2009 Space station crew doubles to six for first time
New Obama 'czar' to thwart cyber spies, hackers
Swat campaign undeterred by bombs in Pakistani cities
| International
|
Crisis-hit Christian Lacroix pledges to fight for fashion house
Eurozone inflation at record 12-month low of zero
Tsvangirai: shunning Zimbabwe bolsters hardliners
| International
|
U.N. war crimes inquiry to depart for Middle East
| International
|
Russia to discuss WTO entry with EU, U.S. next week
| International
|
Obama promotes clean energy, stimulus in Nevada
Study cites 'slow-motion' threat from permafrost
Govt announces money for green jobs, training
Sri Lanka hit by fresh allegations of civilian deaths
Obama to name White House cybersecurity czar
| Technology
|
NKorea vows response if UN imposes sanctions
Time Warner leaning to spin-off method for AOL
| Technology
|
Old woman wows judges at China's 'Pop Idol' : report
New novel by Japan's Murakami a pre-release hit
First case of domestic swine flu in China confirmed
NY officer acquitted in video body-slamming case
Child kidnappers arrested in China: state media
Police: Conn. woman bitten after 'bite me' remark
Bangladesh arrests Mumbai music magnate's killer
Massive outpouring of grief for SKorean ex-leader
Pakistan blasts toll rises to 15: officials
Australia joins fight against piracy off Somalia
Pakistani stocks,rupee nervy on security concerns
Japan boosts output but unemployment up
Phil Spector gets 19 years to life for murder
| Entertainment
|
Angelina Jolie hospitalized briefly for minor injury
| Entertainment
|
Lacroix pledges to fight for fashion house
No butts about it, Lebanon's a smoker's paradise
Iggy Pop: "Literature's like coke, music's like heroin"
Roger Moore relives days as Bond, James Bond
| Entertainment
|
New Beatles museum opens in Hamburg
U.S. rejects Iran accusation of mosque bombing
France charges Zoe's Ark charity with fraud
Wikipedia blocks Scientology from altering entries
Ukraine-Russia gas situation 'very serious': Putin
Music icon Spector gets 19 years for murder
New Obama 'czar' to thwart cyber spies, hackers
Germany picks Magna bid for Opel: minister
Phil Spector Sentenced To 19 Years To Life In Prison For Murder Of Lana Clarkson
New anti-mine technology shows promise in Angola
Germany mulls new Opel takeover plan
Shia LaBeouf Reportedly Involved In Minor Car Collision Despite Having Suspended License
Brazilian Supermodel Gisele Bundchen Tops Highest-Earning Model List
UAW ratifies GM cost-saving deal as bankruptcy looms
Jade Goody's Widower Jack Tweed Released From Prison
Jon Cryer's Ex-Wife Booked For Child Neglect
U.S. won't accept North Korea as nuclear state: Gates
| International
|
US cancer care: Treatment choices are all about you
"AI" Runner-Up Diana DeGarmo's Cyberstalker Sentenced To 2 Years In Jail
U.S. urges more foreign aid for Afghanistan
| International
|
Stand Up To Cancer Names Celebrity Ambassadors
Iran hangs three over deadly mosque bombing: report
| International
|
"Britain's Got Talent" Favorite Susan Boyle In "Floods Of Tears" Over Pressure
Country Star John Rich Turns Himself In For Assault Charges
Flight Of The Conchords Earn Their Wings At Vegas Gig
Climate change may cause 315,000 deaths a year
Somalia piracy crackdown shows signs of success: U.N.
| International
|
US asks court to block release of detainee photos
Learn from Roh tragedy, SKorean politicians told
Hong Kong democrat claims assassination plot
Concern for health of Aung San Suu Kyi
Video game trade show seen returning to glitz
| Technology
|
Wallaby World Cup star bullish about Bulls
Rhapsody's exclusive ads target music consumers
| Technology
|
Taiwan president visits Guatemala
US reporter in NKorea trying to stay positive: sister
Microsoft reverses Windows 7 Starter limit
| Technology
|
Dalai Lama begins European tour in Denmark
Chinese envoy in Sudan for Darfur talks
North Korea to move intercontinental missile
After stumble, US Treasury reaches out to China
China, Taiwan sign deals worth $5.6 bln: report
Hollywood calling for hero captain held by pirates
Jay Leno bids farewell to Tonight Show
| Entertainment
|
Clooney, Hanks urge yes vote on actors' contract
| Entertainment
|
Phil Spector gets 19 years to life for murder
| Entertainment
|
God save the brand? Punk musicians power U.K. ads
| Entertainment
|
Idol castoff Michael Johns to release album
| Entertainment
|
Hollywood calling for hero captain held by pirates
Rhapsody's exclusive ads target music consumers
| Entertainment
|
Phil Spector gets 19 years to life for murder
Mykelti Williamson to join cast of '24'
| Entertainment
|
All in the Family scribe Mickey Ross dies
| Entertainment
|
Four killed, Afghan governor wounded in blasts
Book industry meets over uncertain future
Swat's main town fully under control: Pakistan army
| International
|
US lab debuts super laser
Saudi Arabia rejects Iraq claims of "negativity"
Iran hangs three over mosque bombing
Suu Kyi's health improves, ready for verdict
| International
|
Iran hangs three over deadly mosque bombing
Iran hangs three over Thursday mosque bombing: report
Tsvangirai says MDC faces limitations in new government
| International
|
Hamas says Fatah arrests 22 of its activists
| International
|
Italy Berlusconi blocks publication of party photos
| International
|
Sudan's former president Nimeiri dies
| International
|
Pope says difficult to understand why God chose him
| International
|
Retired US general denies seeing torture pictures
Mosley eager to face Filipino Pacquiao
Pakistan's budget deficit for 9 mths at 3.0 pct of GDP
ADB calls for low-carbon transport systems
Pakistani c.bank buys 29.05 bln rupees of T-bills
Susan Boyle to sing in Britain's Got Talent final
| Entertainment
|
Pressure mounts on Boyle before British talent show
Novelist Kundera dodges Czech conference
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights