Canadian auto parts maker Magna International offered to increase their upfront cash offer for GM’s Opel unit reports said last Tuesday. The cash offer sits now at $714 million and would allow for an immediate cash injection into the brand, rather than using convertible debt to cover the majority of the financing.
GM’s chief negotiator believes the deal will be sealed by the end of September but there are still some kinks to work out.
Analysts reported that problems arose when it became clear that GM would never be able to buy Opel back from Magna once the sale went down, so they began looking at other private equity offers where a buy back could be possible, if or when GM gets back into the black.
German Gov’t officials didn’t like that, so hence the Opel deal leading the pack again.
- Saturn to exit Canadian market
- Chrysler: “Cash For Clunkers brings in most business in 2 years”
- Cash for Clunkers to pull the US from recession
A week or two ago I came across your website and have been reading along steadily. I felt I should write my opening comment. Im not sure exactly what to say except that I have enjoyed reading it. Interesting site. I shall continue coming back to this website very often. I have also grabbed the feed for updates.