Yesterday was the deadline for all three Opel bidders. General Motors Co. said that it received three final offers from three companies for its Opel unit on that day, but a decision was still yet to be made.
Reuters reports today that a meeting on Wednesday between U.S. carmaker General Motors and German government officials will too not yield a decision on which bidder will succeed, citing a government source. Nor will a decision come within this week.
The only thing that can be certain now is that Magna is a favorite, and its follower RHJ International might also be a forerunner. But not even a word on Beijing Automotive Industry Corp.
Magna said yesterday that it would buy 27.5 percent of Opel, compared with 20 percent in an earlier proposal, adding the new bid does not change the proposed G.M. and worker holdings.
Wall Street Journal blogger Jodi Xu talked about at length at the pros and cons for GM choosing BAIC. Advantages will include bigger control of Opel by GM, lowest state guarantees, huge Chinese market and less job cuts. Disadvantages are over concerns of Opel’s union, competition with SAIC and perceptions of management ability.
G.M. Europe said “the final bids will now be analyzed and compared by GM, and the final bids as well as G.M.’s preliminary findings will then be reviewed with the German and other impacted governments, the E.U. Commission and the Opel/Vauxhall Trust Board.”