No Buyback Of Opel From GM – Germany Economics Minister

A attempt by General Motors to include an option to buy back majority control of Opel as a part of the deal to give up 50% of Germany unit in exchange of state aid was ruled out by Germany economics minister.

Karl- Theodor zu Guttenberg, German economics minister in an interview with a German Sunday paper said, “This is incompatible with our views and cannot happen”. If GM would be viewed as short-term player, then there would be problems from the Belgian financial investor RHJ and that may be the reason for the minister stance.

According to official sources, Guttenberg is looking for sustainable players in the market and not just cheap offers for OPel.

The minister further clarified that bidders for Opel need to invest more of their own capital to obtain EU clearance; else the risk would be on the taxpayers. The size of the state aid only would not be the criteria for deciding the bidder, but would be more based on sustainability to repay back the interest, fees and the money.

The other competitive bidders in race to get Opel deal are Magna International, RHJ and Beijing Automotive (BAIC). The final bidding offers are due to close of business in Europe on Monday.

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