The German government has said it would be prepared to give a £3.9 billion loan to car maker Opel if its favoured suitor is chosen to take over the firm.
Berlin is offering the money if Opel’s US owner, General Motors (GM), sells the German-based business to Canadian car assembly and parts group Magna – one of the two remaining bidders along with financial group RHJ.
The heads of Magna and Russian partner Sberbank met their GM counterparts yesterday, according to sources, as decision time nears on the sale of GM’s Opel business.
Automotive group Magna co-chief executive Siegfried Wolf and Sberbank chief executive German Gref would hold an “informal” chat with GM’s Fritz Henderson in Detroit, the source said, adding that no negotiations were on the agenda.
The source was confirming a report in Germany’s mass circulation Bild newspaper, which said the meeting aimed to let all the parties get to know each other better.
Government spokesman Ulrich Wilhelm told news agency Reuters that Germany had made the offer to facilitate a solution to the bidding.
Magna and Sberbank are competing for the business against Belgium-based financial investor RHJ International.
Sources close to the deal have told Reuters that GM’s board of directors will address the sale of Opel today and aims to recommend one of the suitors.
Trustees who oversee a majority stake in Opel – which was ring-fenced and propped up with German aid in May to avoid being swept into GM’s brief bankruptcy – must approve any decision.
