<p>State-owned Beijing Automotive (BAIC) has submitted an indicative, non-binding offer for Germany’s Opel, sources familiar with the situation told Reuters, and would make a binding offer by mid-July.<br /><br />The news comes ahead of a Friday deadline for GM lawyers to submit papers to US federal bankruptcy Judge Robert Gerber who will rule by July 10 on a plan to create a “new GM” with brands Chevrolet, Cadillac, Buick and truck unit GMC.<br /><br />Magna, backed by Russian partners, is the frontrunner to buy Opel. Sources told Reuters that Magna’s board of directors wants to approve a business plan for Opel on July 7.<br /><br />Tough anti-trust probe<br />Belgian holding company RHJ International is the third bidder, although it posted a sharply wider full-year loss and analysts are doubtful it has the cash to compete with its rival suitors.<br /><br />Whoever wins the race for Opel faces a tough anti-trust probe, a German government minister said Friday.<br /><br />When asked whether he counted on Brussels examining any deal for Opel under a lengthier, so-called ‘phase II’ investigation, German Deputy Economics Minister Jochen Homann told reporters: “Yes, clearly.” He declined to specify what issues might concern EU competition authorities since the German government is still awaiting a business plan for the takeover, which he hoped to get by the end of July.<br /><br />Any business plans submitted will be evaluated by PriceWaterhouse Coopers on behalf of Berlin, since the government will have to offer more state aid after already extending Opel a six-month 1.5 billion euro ($2.1 billion) bridge loan that matures on November 30.<br /></p>
<p>State-owned Beijing Automotive (BAIC) has submitted an indicative, non-binding offer for Germany’s Opel, sources familiar with the situation told Reuters, and would make a binding offer by mid-July.<br /><br />The news comes ahead of a Friday deadline for GM lawyers to submit papers to US federal bankruptcy Judge Robert Gerber who will rule by July 10 on a plan to create a “new GM” with brands Chevrolet, Cadillac, Buick and truck unit GMC.<br /><br />Magna, backed by Russian partners, is the frontrunner to buy Opel. Sources told Reuters that Magna’s board of directors wants to approve a business plan for Opel on July 7.<br /><br />Tough anti-trust probe<br />Belgian holding company RHJ International is the third bidder, although it posted a sharply wider full-year loss and analysts are doubtful it has the cash to compete with its rival suitors.<br /><br />Whoever wins the race for Opel faces a tough anti-trust probe, a German government minister said Friday.<br /><br />When asked whether he counted on Brussels examining any deal for Opel under a lengthier, so-called ‘phase II’ investigation, German Deputy Economics Minister Jochen Homann told reporters: “Yes, clearly.” He declined to specify what issues might concern EU competition authorities since the German government is still awaiting a business plan for the takeover, which he hoped to get by the end of July.<br /><br />Any business plans submitted will be evaluated by PriceWaterhouse Coopers on behalf of Berlin, since the government will have to offer more state aid after already extending Opel a six-month 1.5 billion euro ($2.1 billion) bridge loan that matures on November 30.<br /></p>