GM Close to Opel Deal with RHJ

Last post 07-04-2009 11:44 AM by the iceman. 1 replies.
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  • 06-30-2009 7:27 AM

    GM Close to Opel Deal with RHJ

    Belgium-based RHJ International is close to a deal to buy a stake in Opel after talks between parent General Motors and preferred bidder Magna International hit snags, the Financial Times reported.

    Citing a person close to the sale, the report said holding company RHJ and GM could sign a memorandum of understanding this week, and noted GM was seeking bids from rival suitors despite a preliminary deal with Canadian auto parts group Magna.

    A GM spokesperson in Zurich confirmed to CNBC that they are in very active negotiations with Magna and pushing ahead in discussion with private equity group Ripplewood and Beijing Automotive.

    The spokesperson refused to comment on any specifics or progress being made, but said the company is optimistic that an agreement will be achieved.

    The FT said RHJ had improved an earlier bid and GM was "taking it very seriously."

    Despite having been named in media reports as a potential Opel buyer, RHJ has never confirmed or denied that it made an initial bid for the troubled carmaker, let alone a second, improved one.

    "I'm not going to comment on this current speculation," RHJ spokesman Arnaud Denis told Reuters on Tuesday.

    Bank Degroof analyst Hans D'Haese said the frequency and detail of media reports naming RHJ as an Opel suitor led him to think the firm had made a bid, though he added RHJ has said its strategy going forward was to focus on financial rather than industrial buys.

    "It was very explicit — that the cash they have on their accounts now will be used for acquisitions of financial assets in Europe," said D'Haese.

    The Financial Times reported that RHJ's new offer was said to be more sensitive to job losses in Germany, which is providing $2.1 billion of bridge financing to keep the carmaker afloat as GM goes through bankruptcy proceedings in the U.S.

    Another sticking point in the negotiations with Magna is access to the Detroit carmaker's global technology, which the Canadian firm wants to secure on behalf of its Russian partners, the newspaper said.

    The FT report comes one day after German magazine Focus quoted an unnamed RHJ spokesman as saying the group had been "kicked out of the bidding process."

    Denis also declined to comment on that report.

    RHJ's stock was up 1.2 percent at 4.4 euros.

    RHJ's holdings include Japan's automotive components company Asahi Tec, American media group Columbia Music and Belgian automotive component company Honsel International, according to its website.

    General Motors could not be reached immediately for comment and an Opel spokesman declined immediate comment on Tuesday's report.

    Fiat, another potential suitor, declined to comment, as did Magna.

  • 07-04-2009 11:44 AM In reply to

    Re: GM Close to Opel Deal with RHJ

    another GM sell off , Saab had been rumoured to be going to an Indian company, the latest is a buyer of ultra high end custom cars (2.5 million+ each) is in the market bidding for Saab

    BTW I still think GM stock is the next microsoft or google, bargain wise it is trading for pennies on the dollar. $5 or $10 thousand could net a nice windfall if they come out of bankruptcy as soon as they are predicting the will, and the new Camaro is starting to get a waiting list, as soon as the dealer here got one for the showroom, it went out the door!

    (as soon as I finish one I'm rebuilding and sell it I will put some of the profit on GM, but that's just me and not an endorsement or recommendation, I'm a GM guy, drive em and race em)

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