GM has at least 3 bids for Opel | Rpmgo.com

According to Associated Press, GM has already received at least three bids for their European arm, Opel (including Vauxhall). Chris Preuss, a spokesman for the company confirmed this, but wouldn’t give any details about who the bidders are, but it seems these are Fiat, Magna International (as we’ve already reported some time ago) and Ripplewood Holdings.

Fiat has already made public their interest in Opel, this Wednesday, confirming that they’ve submitted an offer for Opel and Vauxhall. “Should this transaction be concluded, a new company encompassing the activities of Fiat Group Automobiles (including its stake in Chrysler) and Opel would be created.” However, the Italian company’s boss, Sergio Marchionne, said the Fiat would not offer cash but would bring assets that were worth the money.

Magna Internation, which also made a bid for Chrysler back in 2007, has previously said they were interested in Opel, the company being prefered by Opel employees, who fear that, in the case of a Fiat takeover, many will lose their jobs or have their salaries cut. Opel currently employs around 25,000 in Germany, which is nearly half of GM Europe’s total workforce.

And apparently there’s also a fourth bidder, the European Opel Dealer Association, which said that in case no deals are made, they’re ready to invest 500 million Euros ($680 million) for up to 20 percent stake.

Opel’s not doing great right now, GM asking Germany for financial assistance, Opel needing around 1 billion Euros ($1.4 billion) in fresh capital over the next month. The German government confirmed this saying that Opel will receive bridge loans to stay afloat until a deal is closed.

[Source: The Detroit News]

Post tags : Fiat, magna international, Opel