Fiat confirms Opel bid, Magna also expected to submit offer

Fiat confirmed today that it has submitted an offer to buy Opel and British brand Vauxhall from General Motors. Sources told Reuters that investment firm RHJ International has also put in a bid and that Magna is also firming up its proposal.

The German government had asked bidders for Opel to have their final bids in by Wednesday at 6 p.m. (12 p.m. EDT.

Opel, which has four plants employing some 25,000 workers, is in a race against time to finalize the sale of the Ruesselsheim, Germany based automaker. While GM will decided on who gets Opel in the end, the German government is expected to play a major roll in the decision since they are likely to provide billion of euros in financing.

GM faces a June 1 deadline to restructure and is expected to file for Chapter 11 bankruptcy within weeks.

– By: Omar Rana

Source: Reuters