UPDATE: Fiat Presented Offer For GM's Opel, Vauxhall Wed
21 May 2009 - 3:38AM
Dow Jones News
Fiat SpA (FIATY) said Wednesday it has presented a formal offer
for General Motors Corp.'s (GM) European units Adam Opel AG and
Vauxhall.
In an e-mailed statement, the Turin-based carmaker said that if
the deal is finalized, the new company will merge Fiat Group
Automobiles, including Chrysler's stake, and Opel.
Fiat is keen to acquire GM Europe units to merge them with its
own auto unit and with Chrysler, in a bold move to tap government
funds to finance a reduction of the auto industry's chronic
overcapacity through a horizontal merger between similar,
mass-market brands.
General Motors is selling GM Europe, which includes Opel in
Germany, as well as Vauxhall in the U.K. and Saab in Sweden, to
raise cash as it faces a possible bankruptcy filing in the U.S. as
soon as later this month.
In the last four weeks, Fiat chief executive Sergio Marchionne
has traveled extensively to the U.S. and Germany in an attempt to
ink a three-way merger between Fiat-Chrysler and General Motors'
European operations.
Fiat is seeking financial support from local governments to
succeed and become a rival to global players like Japan Toyota (TM)
or German Volkswagen (VOW.XE). Austrian-Canadian auto parts
supplier Magna International Inc. (MGA), jointly with Russian car
maker Gaz Russia (GAZA.RS), have signalled their interest in GM
Europe.
Belgium-based RHJ International (RHJI.BT) is also interested, a
person familiar with the matter told The Wall Street Journal
earlier this month.
RHJ International doesn't comment on speculation, an investor
relations executive said Wednesday.
-By Sabrina Cohen, Dow Jones Newswires, +39 02 5821 9906;
sabrina.cohen@dowjones.com