Magna on course to reach Opel deal, co-CEO tells paper

ERJ staff report (AN)

Frankfurt, Germany (Reuters) -- Magna International remains on track to reach a deal to buy General Motors' German unit Opel, but it cautioned that the timetable for a signing could be too ambitious, the head of Magna's European business said in a newspaper interview.

"Every day without a decision is one when cash is burned. We are heading toward July 15 as a target corridor to present documents upon which a decision can be made," co-CEO Siegfried Wolf told the Rheinische Post in an interview to be published on Thursday.

"One or two days are not decisive, we are well on our way (to coming to to an agreement)," he added.

Magna is considered the favorite to acquire Opel but it faces competition in particular from Beijing Automotive Industry Corp. BAIC's bid offers fewer job cuts and requires less state aid than Magna's.

The state-owned Chinese carmaker wants to improve its competitive position in its domestic market versus Shanghai-based rival SAIC, a joint venture partner of Opel parent GM.

From Automotive News (A Crain publication)