Archive for May, 2009

posted by GM Fan on May 21

Three firms— Fiat, Magna, and RHJ— lead the pack to buy Opel, a General Motors subsidiary. Bids for buying Opel were due last Wednesday and it has been confirmed that the Italian car maker Fiat, Belgian investment firm RHJ, and Canadian company Magna International formally placed their offer.

General Motors is against the wall as it faces the June 1 deadline of the federal government to restructure their business and come up with compromise deals with its debtors so they can get more loans.

Insiders have warned that the car manufacturer might not be able to beat the deadline. Experts foresee GM to seek bankruptcy protection when the bell rings on June 1.

Earlier reports cited Fiat as the favored bidder with greater than 50% potential of winning the Opel takeover as based on the expertise that the company has. The latest information suggests that some German officials have expressed preference for the offer from Magna International.

GM officials are also skeptical of the plans of Fiat top executives to combine the Opel business with its stakes on Chrysler LLC and the automaker’s operation in Europe and Latin America.

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