Magna open to work with GM even if Opel bid fails

COLOGNE (Reuters) - The founder and chairman of Canadian auto parts supplier Magna MGa.TO could imagine another form of cooperation with General Motors Co GM.UL if his planned deal to acquire German carmaker Opel fails.

"We can always imagine that we would enter into a good cooperation with our customers," Frank Stronach told Reuters on the sidelines of an industry event.

"We were very close to sign a joint venture for the Russian market between GAZ (GAZA.RTS), Magna and General Motors a year and a half ago, but because GM slid into insolvency the contract was not signed in the end," he explained.

GM's board of directors met on Wednesday to discuss a possible sale of Opel to Magna or rival bidder RHJ (RHJI.BR) that free them of the need to finance its restructuring and product development.

The board also wanted to evaluate whether GM could raise enough funds to pay back a 1.5 billion euro ($2.17 billion) bridge loan for Opel in order to regain full control of Opel.

Stronach said he expected to hear whether the board approved a sale to Magna "any time," but conceded that there was still a possibility it could take "a couple of weeks or even longer."

Some analysts believe GM wants to wait until after general elections in Germany before announcing a decision.

Magna had signed at the end of May a memorandum of understanding with GM to buy a majority of Opel that caused Germany to give Opel the bridge loan in the first place, but GM's management has since backed away from the deal.

"There are probably some people in General Motors management and board that say, 'We want to keep it so we can be a global company,' and others would say, 'But we have signed a contract and this could mean we lose market opportunities,' and so on. I can't speak for GM," Stronach said.

He said Magna made the bid for Opel in order to boost efficiency at the company through a more constructive give-and-take between management and unions, but he declined to comment on Opel's chances to remain competitive in the future under GM.

Opel labor leader Klaus Franz threatened on earlier on Wednesday that workers would no longer be prepared for wage concessions under GM since it plans to close as many as three of the four German plants.

"GM's viability plan foresees one plant per country," Franz told Reuters this week. He has thrown his entire weight behind a deal with Magna.

Stronach did not express interest in other carmakers if the deal with Opel did not succeed.

When asked specifically about whether he might look at Volvo Cars, which Ford Motor Co (F.N) is looking at selling, he said: "That is not an issue at the moment."

($1=.6898 Euro)

(Reporting by Christiaan Hetzner and Angelika Gruber; Editing by Richard Chang)