End in sight

Austrian-Canadian auto parts maker Magna says it has ironed out the final details in its bid to buy General Motors' European Opel unit, which includes German car manufacturer Opel and Britain's Vauxhall.

In a statement Magna said "the open questions have been closed." The announcement comes after months of negotiations between GM and Magna.

The management boards of Magna and GM still have to give their final seal of approval.

A statement from GM Europe's headquarters in Zurich on Thursday confirmed that the firm had received "revised draft agreements" from Magna which would also be submitted to the German government.

Belgium-based investor RHJ had looked like the favorite to win GM endorsement, because the US parent was reportedly skeptical of Magna's Russian backers.

GM will have to decide between Magna's takeover bid and the offer from Brussels-based investor RHJ International.

The Magna bid is from a consortium of Magna International and the state-owned Russian lender Sberbank, who have indicated that they want 55 percent of the GM's European division.

Chancellor Angela Merkel's coalition government has thrown its weight behind Magna's bid, which has pledged to keep open all of Opel's four plants in Germany. Magna also has the support of the governments of all four German states where Opel has factories as well as from unions.

The German government has pledged 1.5 billion euros ($2.13 billion) in loan guarantees for the ailing US subsidiary, which is has been hit hard by the downturn in the car industry.

No details have been released about the deal and it is not clear when a GM will make its final decision.

nrt/AP/Reuters/dpa
Editor: Nancy Isenson