Life & Style | Motoring
China auto firm makes Opel bid
A Chinese automaker has offered to buy a stake in General Motors unit Opel, challenging a deal from Canadian auto parts supplier Magna, sources said on Friday.
- Reuters
- Published: 23:26 July 3, 2009
Frankfurt/Munich: A Chinese automaker has offered to buy a stake in General Motors unit Opel, challenging a deal from Canadian auto parts supplier Magna, sources said on Friday.
State-owned Beijing Automotive (BAIC) has submitted an indicative, non-binding offer for Germany's Opel, sources familiar with the situation told Reuters, and would make a binding offer by mid-July.
The news comes ahead of yesterday's deadline for GM lawyers to submit papers to US federal bankruptcy Judge Robert Gerber who will rule by July 10 on a plan to create a "new GM" with brands Chevrolet, Cadillac, Buick and truck unit GMC.
Magna, backed by Russian partners, is the frontrunner to buy Opel. Sources told Reuters on Thursday that Magna's board of directors wants to approve a business plan for Opel on July 7.
Belgian company RHJ International is the third bidder, although it posted a wider full-year loss on Wednesday and analysts are doubtful it has cash to compete with its rival suitors.
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