Thursday, June 9, 2011

General Motors Close to Opel Deal with RHJ

NEW YORK - General Motors Corp (GMGMQ.PK) is close to a deal with Belgium-based RHJ International (RHJI.BR) to sell a stake in Opel, and a memorandum could be signed within days, the Financial Times reported citing a person close to the sale process.

RHJ International had improved its earlier bid and GM was "taking it very seriously" said a person close to the sale process on Monday, the paper added.

According to the paper, RHJ's new offer was said by this person to have taken more account of political sensitivities over job losses in Germany, which is providing $2.1 billion of bridge finance to keep the carmaker afloat as GM goes through bankruptcy proceedings in the U.S.

Last month, Germany reached a preliminary agreement with Canadian auto parts group Magna International Inc (MGa.TO) over a takeover plan for Opel, General Motors' European unit.

General Motors and RHJ International could not be reached immediately for a comment by Reuters. (//mbs)


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