Negotiating 'New Opel'

General Motors' board of directors is scheduled to meet in Detroit on Tuesday, November 3, to give final approval to a much-awaited takeover deal. The agreement would see Canadian car parts maker Magna International and Russian lender Sberbank take a 55 percent stake in Adam Opel GmbH, defeating a rival bid from private equity firm RHJ International.

Under the terms of the deal, GM would retain a 35-percent stake in the European manufacturer, while the remaining 10 percent would be held by Opel's employees.

Rolling delays

But recent weeks have seen fresh doubt cast on the deal, amid rumors that the new German government planned to review the previously agreed sale of Opel to Magna and that the carmaker remain property of GM after all.

Moreover, EU competition authorities have voiced concerns about the fairness of the bidding process, suggesting that political pressure applied by Berlin cornered GM into choosing Magna as its preferred buyer.

German Chancellor Angela Merkel's government offered 4.5 billion euros ($6.63 billion) in guarantees for Magna's takeover of Opel, but did not offer any support to RHJ International's bid.

Brussels' reservations about the state aid involved in the deal delayed its formal signing.

But according to Reuters news agency, GM CEO Fritz Henderson said he was "reasonably confident" that the deal would be finalized after the German government assured European Competition Commissioner Neelie Kroes that there were no strings attached to the funding.

Head-hunting for New Opel

Who exactly will head up New Opel is another unresolved issue. Contrary to expectations, it is unlikely to be Carl-Peter Forster, GM's Europe CEO.

According to media reports, Magna would like to see the role filled by Herbert Demel, head of its Austrian car development and assembly plant.

Forster had been touted to become the head of Opel's operating business with Demel assuming management of the Opel holding company, WirtschaftsWoche magazine reported last Sunday.

But a German newspaper reported Tuesday that Forster has already informed Magna he will not be considering the job.

The Hannoversche Allgemeine Zeitung quoted insiders who say that the condition for Demel taking the job is GM's definitive approval of the sale to Magna and Sberbank.

jp/AP,Reuters
Editor: Sam Edmonds