John Smith, GM group vice president corporate planning and alliances (and GM’s chief negotiator for the sale of a stake in Opel/Vauxhall), provided today an update on the status of Opel, which you can read below.
Of course, you can read also news about Opel by checking out my shared RSS items, which are updated on a daily basis!
"It has been a while since I last provided you all an update on the status of Opel, but assume you’ve kept up with the selection of the Magna/Sberbank proposal in early September, the subsequent approval of that recommendation by the Opel Trust Board, and the occasional reporting ever since — which has been mostly around the work being done on preparing the binding agreements for signing, negotiations with various labor unions, etc. A lot of progress has been made to be sure.
Since the Trust Board approval was given, the European Union has been reviewing the Opel investor process and the circumstances surrounding the selection of Magna/Sberbank. Such a review is usual and customary when extensive government financial support is involved. Last week, the Directorate-General for Competition expressed concerns about possible limitations on the availability of government financing for all Opel bidders, and how that may have influenced the selection process. The German Government was asked by DG Competition to communicate its position on financing availability to GM and the Opel Trust Board who, in turn, were requested to consider the recommended bidder for Opel accordingly.
Given the significance of the Opel transaction, GM’s Board will soon meet in its regularly scheduled monthly meeting (November 3) to consider Minister zu Guttenberg’s letter and changes to the Magna/Sberbank proposal that have occurred since its last review on September 9. In the meantime, work will continue to resolve remaining open points with the Magna/Sberbank proposal—for example, related to labor cost reductions and the government-backed financing package — to document the related understandings, and complete all preparations for the signing of binding agreements should that be authorized by GM’s Board at the November 3 meeting."
Of course, you can read also news about Opel by checking out my shared RSS items, which are updated on a daily basis!
"It has been a while since I last provided you all an update on the status of Opel, but assume you’ve kept up with the selection of the Magna/Sberbank proposal in early September, the subsequent approval of that recommendation by the Opel Trust Board, and the occasional reporting ever since — which has been mostly around the work being done on preparing the binding agreements for signing, negotiations with various labor unions, etc. A lot of progress has been made to be sure.
Since the Trust Board approval was given, the European Union has been reviewing the Opel investor process and the circumstances surrounding the selection of Magna/Sberbank. Such a review is usual and customary when extensive government financial support is involved. Last week, the Directorate-General for Competition expressed concerns about possible limitations on the availability of government financing for all Opel bidders, and how that may have influenced the selection process. The German Government was asked by DG Competition to communicate its position on financing availability to GM and the Opel Trust Board who, in turn, were requested to consider the recommended bidder for Opel accordingly.
Given the significance of the Opel transaction, GM’s Board will soon meet in its regularly scheduled monthly meeting (November 3) to consider Minister zu Guttenberg’s letter and changes to the Magna/Sberbank proposal that have occurred since its last review on September 9. In the meantime, work will continue to resolve remaining open points with the Magna/Sberbank proposal—for example, related to labor cost reductions and the government-backed financing package — to document the related understandings, and complete all preparations for the signing of binding agreements should that be authorized by GM’s Board at the November 3 meeting."
