GM has only minor issues with RHJ's Opel bid: source
FRANKFURT (Reuters) - General Motors has only some
minor issues left to clarify with private equity buyer RHJ International (RHJI.BR) over a sale of a majority stake of its Opel unit ahead of a Monday evening deadline to submit bids, a source told Reuters on Friday.
GM's negotiating team would then gather "feedback" from the German state and federal governments, the European countries with Opel plants and the European Union starting next Wednesday through Friday, the person familiar with the details said.
The week after next both the U.S. government and GM's own board would discuss the recommendation, based on how much government aid is required, how soon it would be paid back and finally what is the U.S. carmaker's own best interest.
"The advantages of RHJ's offer is that it is a much simpler deal, requires less taxpayer money, plans to pay it back quickly and has a relatively more aggressive restructuring of Opel," the person said.
GM does not have a right to buy back RHJ's stake in Opel when the Belgian finance investor eventually exits its investment but it has the possibility at least.
"They get to set the price, GM can elect to take it or not," the source continued.
GM expects to get approval from the Opel trust to sign a binding sale agreement with one of the parties at the end of July, the source said.
RHJ, which originally stood for Ripplewood Holdings Japan, is competing with Canadian auto parts maker Magna (MGa.TO) and its Russian partner Sberbank (SBER.RTS).
(Reporting by Christiaan Hetzner)
