Beijing Automobile Works Holding Company (BAW Holding) brings a perfected acquisition offer and returns to the negotiation table with Opel.
General Motors (GM), who parents Opel, thinks BAW Holding and another potential buyer – RHJ International SA – offer a more appealing, albeit, concise proposal, which helps repay Opel's loans and aims at rejuvenating Opel in the long-run.
BAW Holding is also unwilling to give up the prime opportunity – probably the only object for international takeover at the moment, after all, "related departments in Beijing have basically given their consent", a BAW Holding official reveals, that BAW Holding has hired institutions like Deutsche Bank to facilitate the procurement.
However, at the same time, price offered by BAW Holding is less appealing. According to the company's authority, the purchase entails approximately 6 billion yuan (US$878.48 million), a huge figure to Beijing. Furthermore, the previous Opel-Magna Memorandum of Understanding "would raise the price and be disadvantageous to BAW Holding."
Pressures also come from Opel that its Union leader Klaus Franz has expressed explicit opposition to BAW Holding's attempt but, would be happy to see a marriage with Magna.
For more information, please consult the original coverage in Chinese at:
(China.org.cn by Maverick Chen, July 3, 2009)