Opel (GM) Bidders Push To Win Labor Support As Decision Nears

[Omaha Steve]

http://online.wsj.com/article/BT-CO-20090525-703342.html

* MAY 25, 2009, 7:50 A.M. ET

By Christoph Rauwald
Of DOW JONES NEWSWIRES


FRANKFURT (Dow Jones)--Bidders for General Motors Corp.'s (GM) German Adam Opel GmbH unit are expected to discuss details of their offers with labor representatives Tuesday in what appears to be one of the final rounds of talks before a midweek decision on German government support.

Officials of Austrian-Canadian auto supplier Magna International Inc. (MGA) and Ripplewood Holdings LLC are expected for talks at the unit's headquarters in Ruesselsheim, Opel labor representatives said Monday.

A spokeswoman for Opel supervisory board member and labor representative Armin Schild added that representatives of Italian automaker Fiat SpA (F.MI) might attend as well.

Magna appears to be frontrunner for Opel. According to previous statements, Magna has teamed-up with Russia's Sberbank (SBER.RS) for a planned investment of around EUR700 million. Under the plan, which is backed by Opel's labor representatives, Opel's troubled parent would retain a 35% stake in the company. Sberbank would take a 35% stake as well, with Magna holding 20% and Opel's employees 10%. Magna didn't return calls seeking comment. A spokesman for Opel declined to comment on the bids.

The German government confirmed at a press briefing Monday that it aims for a decision by the middle of the week. Government spokesman Ulrich Wilhelm said Chancellor Angela Merkel had a telephone conversation with Russian Prime Minister Vladimir Putin Saturday, met with Magna's management on Sunday and aims to meet Fiat Chief Executive Sergio Marchionne in the first half of this week.

The government's task force has also talked with RHJ but the firm's bid for Opel is less complex than those submitted by Magna and Fiat, Wilhelm said.

FULL STORY AT LINK.