General Motors is one step closer to filing for the largest bankruptcy ever for a U.S. industrial company after bond exchange offers failed. On the other hand, the sale of GM’s European brand Opel isn’t going so well either as German officials ended talks earlier today without reaching a deal.
The bidding war for Opel had narrowed down to a two-way race between Fiat SpA and Magna International. German officials were unable to reach a deal after 12 hours of talks stretching well into Thursday morning.
Ministers said that talks ended since the German government is unable to provide temporary financing if GM files for bankruptcy is the United States. Reports yesterday said that Fiat and Magna needed to improve their offers and assume greater risk by making commitments to reserve jobs and plants.
“We have made demands on the U.S. Treasury and expect answers by Friday and we will need these answers in order to agree a plan,” said Economy Minister Karl-Theodor zu Guttenberg. “We don’t have the security yet that we need to commit to bridge financing today.”
– By: Omar Rana