M&A

3 November, 2009

Europe to secure bulk of Opel financing - GM Europe

FRANKFURT, Nov 3 (Reuters) - GM Europe [GM.UL] said it plans to secure the bulk of financing to secure Opel's future from European loan guarantees after General Motors decided not to sell the European unit to Canada's Magna (MGa.TO).

"We are not in a position to detail the financing publicly at this point," a GM Europe spokeswoman said on Tuesday.

"The plan is to secure the bulk of financing from European loan guarantees," she said.

"The restructuring of Opel for long-term sustainability requires involvment and support from all stakeholders including employees and governements," the spokeswoman added.

The board of GM announced earlier it had opted to keep Opel, undoing months of painstaking negotiations to sell it to a Russian-backed group led by Magna. (Reporting by Angelika Gruber, writing by Nicola Leske)

Source: http://www.reuters.com