Opel may have to enter bankruptcy proceedings if a deal cannot be reached soon with either RHJ International or Magna.
According to Bloomberg, GM’s new 13-strong board is meeting today and will make the Opel situation its main topic of discussion to ensure the situation can be resolved as quickly as possible.
GM is said to favour the bid from RHJ, but the German government and four local governments who provide money to Opel are all strongly favouring Magna.
Roland Koch, the state premier for the state of Hesse, where Opel's headquarters is based, said there would be no German taxpayer money available for RHJ.
He said Germany has worked hard to make it clear to GM “that there would be no consensus for the financing of an RHJ takeover”.
According to GM’s chide negotiator John Smith, "[Magna’s bid] contained elements around intellectual property and our Russian operations that simply could not be implemented” and RHJ’s bid would represent “a much simpler structure and would be easier to implement”.
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