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Canadian firm buys Opel

May 29 2009 19:18

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Berlin - Canadian car parts manufacturer Magna has reached agreement with General Motors (GM) on the terms of a takeover of German carmaker Opel, German government sources said on Friday.

The proposal, aimed at rescuing GM's European subsidiaries from the US car giant's anticipated insolvency, is to be discussed at a special meeting hosted by the German government Friday evening.

German Vice-Chancellor Frank-Walter Steinmeier mediated the agreement during talks with Magna chief executive Frank Stronach, government sources told German Press Agency dpa.

A number of questions remain unresolved, including the appointment of a board of trustees to oversee Opel, a move demanded by Berlin but opposed by the US government.

- Sapa-dpa

 
 
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