Merkel favours Magna

LONDON: The takeover of GM Europe by the Russian-Canadian Magna consortium seems all but complete with German Chancellor Angela Merkel indicating that she favours that group over a rival bid from RHJ International, a United States private equity firm.

Merkel said a German task force would decide at the weekend on bids for GM Europe, which includes the Opel and Vauxhall operations, but she could not rule out a difference of opinion with the car-maker's parent company, General Motors.

"We want a quick decision, and have a clear preference," she said, adding that her Government still preferred the bid from Magna, which has undertaken to save German jobs.

For their part, Magna, which was designated a preferred bidder a few months ago, said "the open questions have been closed" in negotiations between GM and its management, and that the complex sales contract will now to go GM's board.

- INDEPENDENT