Magna to take over Opel
May 30, 2009 in Archive
This has just come in via news alert from Automotive News.
Thoughts on what Fiat might try to do in response are welcome in comments.
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FRANKFURT (Reuters) — General Motors and Canadian auto parts group Magna International Inc. have reached an agreement in principle that could rescue ailing German carmaker Opel, sources close to the negotiations said today.
The two sides have been trying to agree on a memorandum of understanding that would serve as the basis for bridge financing of 1.5 billion euros ($2.10 billion) as well as a trustee solution that would protect Opel from creditors in case parent GM files for Chapter 11 in U.S. bankruptcy court.
“A framework agreement has been reached. The goal is to work out as many of the details as possible before the meeting with (Chancellor Angela) Merkel in order to sign a memorandum of understanding today,” one source with knowledge of the talks told Reuters.
The rest of the backstory is here.
