GM could sell Opel stake for zero gain

[FarCenter]

By John Reed in London and Daniel Schäfer in Frankfurt

Published: April 19 2009 23:31 | Last updated: April 19 2009 23:31

General Motors is prepared to part with a controlling stake in Opel/Vauxhall for nothing but a pledge to invest directly in a new company formed from its European operations, according to two people familiar with its plans.

GM, which might file for bankruptcy in the US and is running short of cash in Europe, was talking to more than six financial and industrial groups about acquiring a stake in its regional arm, Fritz Henderson, the carmaker’s chief executive, said last week. It wants potential buyers to give a firm indication of their interest over the next two to three weeks.

According to a person familiar with GM’s thinking, an investor will be asked to pay at least €500m ($652m) in equity but the carmaker will realise no financial gain as the money will be injected directly into Opel.

People close to GM say it is also prepared to unload Saab, its Swedish premium brand that filed for creditor protection in February and recently opened its books to outside investors, for as little as nothing in order to divest the brand.

<snip> http://www.ft.com/cms/s/0/6be22014-2cfd-11de-8710-00144feabdc0.html

[AndyTiedye]

1. Is There Any Part of GM That is Profitable?