GM Screws The Germans, Will Keep Opel

Posted: November 3, 2009 at 5:27 pm

gmThe German government went to a great deal of trouble to finance a bid for Canadian parts firm Magna (NYSE:MGA) and a Russian financial group to buy GM’s Opel and Vauxhall operations. GM has turned around and decided to keep the European companies, perhaps relying on US bailout money and an improving US car market to fund retaining and restructuring the companies.

Germany had offered $6.58 billion in state aid to help close the Magna transaction. It remains to be seen if the same capital will be available to GM.

Douglas A. McIntyre

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