FACTBOX - What Opel's suitors have in mind
July 15 (Reuters) - Germany sees Canada's Magna (MGa.TO) as front-runner to take over Opel but would reassess its position if another buyer for the General Motors GMGMQ.PK unit emerged, a government spokesman said. [ID:nLF266904]
China's state-owned carmaker BAIC for instance might still have a chance to clinch victory. Following are details on the potential buyers' plans for Opel:
MAGNA
- Strategy
Wants to expand its full-scale car assembly business. It envisions using some of Opel's plants to assemble more models for other car companies through outsourcing contracts. It forecasts high growth rates, particularly in Russia, home of its consortium partners Sberbank (SBER03.MM) and GAZ (GAZA.RTS).
- Shareholding
Wants around 20 percent of Opel, with Sberbank planning to hold 35 percent. Around 10 percent would be taken up by Opel workers and 35 percent will remain with GM.
- State guarantees
Says it needs 4.5 billion euros ($6.3 billion) of guarantees from the German government.
- Equity investment
Will invest 500-700 million euros in Opel. Only a portion would be strictly considered equity and the remainder could be convertible debt.
- Jobs
Around 10,000 of the total 50,000 jobs across Europe would slashed. Some 25 percent of the cuts would be in Germany.
- Works council and government
Magna is the only investor which has received the nod from the national government, works council and the various federal states where Opel's plants are located. But Magna and GM are still bargaining over distribution rights and plants in Russia. Among those opposing Magna are customers such as Volkswagen (VOWG.DE) who are miffed that one of their suppliers would become a direct competitor.
RHJ (RHJI.BR)
- Strategy
Could restructure Opel and sell it on in the hopes of turning a quick profit. GM could be an interested buyer.
- Shareholding
Sources say RHJ would be interested in buying over 50 percent of Opel and, like Magna, would like Opel workers to be a part-owner. The rest of the shares would be retained by GM.
- State guarantees
Needs German state guarantees totalling 3.8 billion euros.
- Equity investment
Sources say RHJ wants to invest around 300 million euros.
- Jobs
Plans are for job cuts totalling less than 10,000.
- Works council and government
Response from politicians and workers so far muted. States that house Opel's plants and works councils have formed a united front against RHJ, whom they suspect is just a proxy for GM.
BAIC
- Strategy
Has dangled the prospect of being able to help Opel expand its market share in China.
- Shareholding
Wants to buy 51 percent. The rest would be kept by GM.
- State guarantees
State aid of around 2.64 billion euros is needed.
- Equity investment
Sources say it will invest 660 million euros in Opel.
- Jobs
Around 7,600 jobs would be cut Europe-wide, including 3,000 in Germany.
- Works council and government
All are sceptical of BAIC's concept. They fear Opel, with its strong research and development activities, would only open the doors for a technology transfer to China.
FIAT (FIA.MI)
Has temporarily withdrawn from the bargaining table but says it continues to be interested. Sources say Fiat is monitoring negotiations and could launch a last minute bid if any deal with the frontrunners falls apart. German Economy Minister Karl-Theodor zu Guttenberg backs Fiat's plans but the socialist SPD and works council have said they oppose Fiat's concept. (Reporting by Angelika Gruber; Writing by Marilyn Gerlach; Editing by David Holmes)
