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Magna’s Opel Offer Not Exactly Magnanimous

Critics say missing job guarantees must be included.

by on May.05, 2009

The Canadians versus the Italians in a bid for German Opel?

The Canadians versus the Italians in a bid for German Opel?

“There is no assurance that any transaction will result from Magna’s current involvement,” Magna noted in a statement that confirmed it was bidding for up to 25% share of Opel.

Magna’s interest has come under attack in Germany because it does not offer any specific job guarantees or offer any assurance the Opel name will actually live on.

Fiat Spa also wants to buy German-based Opel, although CEO, Sergio Marchionne, is looking for the German Government to help finance a complete takeover of the company by Fiat, which would then create a new publicly-held corporation consisting of the loss-making automotive arms of both entities that would be sold to shareholders.

If that sounds like financial engineering of the kind that brought you sub-prime loans as AAA -rated paper by Standard and Poors, well, it sure seems similar. German government officials are apparently considering this proposition, with one senior minister calling it “intriguing.”  (more…)