Wednesday, September 2, 2009

RHJ ups cash in Opel bid

RHJ International SA increased its offer for General Motors Co.'s Opel unit, agreeing to inject more cash into the unprofitable division and seek less in loan guarantees from the German government.

Under the revised bid, RHJ would contribute 300 million euros ($426 million) instead of 275 million euros, Arnaud Denis, a spokesman for the Brussels-based investor, said in an interview. The offer foresees loan guarantees of 3.2 billion euros instead of 3.8 billion euros, with repayment planned by 2013, one year earlier.

The German government, which has provided 1.5 billion euros in short-term loans to keep Opel afloat, is pushing GM to accept a bid by a group led by Canadian parts supplier Magna International Inc.

Germany has said it would provide 4.5 billion euros in guarantees for Aurora, Ontario-based Magna's offer.....More

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