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Magna sees Opel deal in September, Berlin cautious.
Magna Co-Chief Executive Siegfried Wolf RL, Klaus Franz, head of Opel and GM Europe Council President Carl-Peter Forster attend a news conference after talks at the headquarters of German car manufacturer Opel in Ruesselsheim June 3 2009.
By Rene Wagner and Angelika Gruber BERLIN Ruesselsheim, Germany.
BERLIN Ruesselsheim, Germany group of Magna International Inc. Canadian auto parts said Wednesday it plans to complete a takeover of Opel in September, but the German government clearly has the door open to competing bidders.
Berlin agreed to provide from 1 to Saturday 5 billion euros 2 14 billion in bridge financing for Opel as part of an agreement to protect the company's Chapter 11 bankruptcy U S parent General Motors Corp.
The basis for the provision of funds was a preliminary deal between Magna and GM, but Germany has stressed so far that other bidders, including Fiat SpA and China's BAIC in Italy, still have a shot if they improved their offers.
The process is always open to all bidders, government spokesman Ulrich Wilhelm told reporters in Berlin.
A German official told Reuters that BAIC representatives met with members of the government and clearly they seriously consider a more detailed bid if talks with Magna failed.
The government's interest to keep the pressure on Magna until a deal is closed that satisfies Berlin requirements.
But Magna is the favorite to make a deal, especially as its main rival bidder, Fiat, said it was focusing on the revival of Chrysler LLC.
After being criticized for doing nothing to help the supply of Fiat, the Italian Prime Minister Silvio Berlusconi said Wednesday that his government would be ready to intervene with Germany to support another Fiat bid if the manufacturer wanted.
Magna Co-Chief Executive Siegfried Wolf Management met Opel workers in Ruesselsheim headquarters automaker Wednesday and promised to seal the deal quickly.
We believe that we have completed in the next four, five weeks and then there's the final signing, he said after the signing, all approvals must be given, and I think we can expect a closing in September, end of September .
After Magna and Sberbank of Russia have agreed in principle on Friday with GM to take a combined stake of 55 percent in Opel, European governments have been scrambling a total of 4 to 5 billion euros in loan guarantees.
In Germany, a state bailout so close to federal elections on September 27 has become politically as a series of German companies seek government support and try to cut staff costs amid the global economic crisis.
Vice Chancellor Frank-Walter Steinmeier German said Magna could cut some 10,000 jobs at Opel, GM Europe had already said costs Opel staff would be reduced by 1 2 billion to return the automaker to profitability in 2011.
The negotiations on the future of sites in Britain Luton and Antwerp in Belgium would be a hard nut, labor leader Klaus Franz Opel chief said, adding it was unclear at this stage if the unions succeed in keeping these plants open.
Many details remain to be worked between Magna and GM, as if Opel cars could be sold worldwide in five years or if the new entity would be a German or European Company SE.
Even the ultimate shareholder structure might not yet be finalized, Franz added, explaining that a full evaluation would reveal whether GM would retain 35 percent of Opel or if the workforce would gain more than the expected 10 percent the expense of the automaker U S.
Additional reporting by Francesca Piscioneri in Rome; Editing by Gerald E McCormick.
Magna sees Opel deal in September Berlin cautious Reuters, magna sees Opel.