The battle for Adam Opel GmbH might not be over yet.
General Motors Corp., despite
striking a tentative deal to sell a majority stake in Opel to Magna International Inc. (NYSE:MGA) last month, continues to hold discussions with rival suitor Ripplewood Holdings LLC,
according to a report on the London Times' Web site. Magna, along with Russia's Sberbank, was named the preferred bidder subject to completion of due diligence after beating out both Ripplewood and Italian automaker Fiat SpA after offering to invest €700 million ($975 million) in the unit in return for a 55% stake.
Fiat could also be interested should the bidding be reopened, according to industry sources, and according to
reports Chinese automaker Beijing Automotive Industry Corp. is also examining Opel's books. It is unclear whether BAIC would be interested in joining one of the existing suitors, or making its own bid.
The reports, if true, do not necessarily mean that the Magna deal is in trouble. A U.S. automotive source suggested Friday that GM might simply be trying to gain leverage in final negotiations with Magna. Some in the industry have suggested that the German government's decision to anoint Magna as the preferred bidder could make it difficult for GM to extract a good deal for Opel, which for years has been its primary European operation. -
Lou WhitemanLou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman
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