UPDATE: German Econ Min Says All Options Still Open For Opel
23 May 2009 - 2:58AM
Dow Jones News
German Economy Minister Karl-Theodor zu Guttenberg said Friday
that all options are still open for General Motors Corp.'s (GM)
German Opel brand, including possible insolvency.
"All options are still under consideration... I very much call
for keeping all three [bids] in the talks," zu Guttenberg told Dow
Jones Newswires at the sidelines of an event in Berlin.
Separately, zu Guttenberg described Magna International Inc.'s
(MGA) bid for Opel as "interesting," but added that some financial
details still require clarification as the German state is expected
to support the deal with taxpayers' money.
"It is the case that Magna has presented an interesting concept,
but also [one] that has drawn up questions. These are all questions
that are relevant to taxpayers," he said.
"We must exercise a risk assessment on how big the default risk
of guarantees can be. We have to look at this in a very sober way,"
zu Guttenberg said.
"It is safe to say that which ever concept we might want to
pursue, a substantial number of jobs in Europe is at risk," he
said.
Regarding a timeframe for a decision, zu Guttenberg said: "We
must have made a principle decision next week because in the U.S.
they will make a decision regarding starting insolvency procedures"
for Opel's parent, GM.
Company Web site: www.opel.com
-By Andrea Thomas and Christoph Rauwald, Dow Jones Newswires;
+49 69 29 725 512; christoph.rauwald@dowjones.com