F&I Management & Training

RHJ Holdings, the Belgian conglomerate, has raised its offer for the European businesses of General Motors, including Vauxhall in the UK.

New offer

It has increased its cash offer for GM Europe by Euro 25m to Euro 300m for a 50.1 per cent controlling stake.

RHJ has also reduced the amount of state aid it requires as part of its bid to buy the company from Euro 3.8bn to Euro 3.2bn and said it would deliver payback by 2013, a year earlier than previously proposed.

The Times reported that the GM board is split on what to do with GM in Europe.

Initial bids

Earlier this summer it received initial bids from RHJ and Magna International but two weeks ago it indicated that it was considering retaining the business. The GM board is to meet next week to discuss the issue.

The Financial Times reported that the Magna bid remains the preferred option for the German government, despite the new offer from RHJ, quoting Steffen Moritz, the German economy minister.

Berlin, it said, remains hostile to the RHJ bid because it believes the group lacks the industrial expertise and backing to run Opel.

Germany has already given Opel Euro 1.5bn in loans to keep it afloat.

It has a strong interest in Opel in an election year as it employs 25,000 people in Germany at four plants

DATED: 04.09.09

FEED: MT