Wednesday, July 15, 2009

Hot News: Russian PM 'to Save Magna Deal'


Russian president Dmitry Medvedev is ready to step in and save Magna and Sberbank’s takeover of Opel/Vauxhall from GM.

Medvedev is visiting Germany this week and as part of his trip he will go to Munich to add his backing to the faltering deal.

A Kremlin aide said: “In Munich we will speak out in favour of this deal. It's a good deal. We hope others will support it as well.”

GM had originally agreed a deal with Canadian parts supplier Magna and Russian state bank Sberbank to buy a 55 per cent stake in Opel/Vauxhall.

Since the deal was agreed in May, progress has been slow and Chinese manufacturer BAIC and Belgian private equity firm RHJ International have both lodged bids for the firm.

RHJ is the latest company to bid for Opel/Vauxhall, a move which has angered the union leader of 55,000 GM Europe workers.

“If GM decides for RHJ, it will be business as usual,” said Klaus Franz. “That will kill the company.”

Thanks to: Autocar

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