Stakes raised in bid for GM Europe
THE Belgian bidder for General Motors’ European arm, which includes Vauxhall, has raised its offer, it emerged today.
RHJ Holdings, has reportedly increased its cash offer for GM Europe by €25 million (£22m) to €300 million for a 50.1% controlling stake.
As part of an attempt to sweeten its offer, RHJ has also reduced the sum of state aid that it has requested from €3.8bn to €3.2bn and pledged to repay it by 2013, earlier than originally planned.
The latest twist in the long-running bid process comes amid continuing uncertainty about the future of Vauxhall and Opel.
Last month GM considered two offers — from RHJ and from Magna International, a Canadian car parts maker — but two weeks ago, the new GM board indicated that it was considering retaining the European business.
The board, which is split over the issue, is set to meet next week to discuss the future of Opel and Vauxhall.
While it is unclear whether they hope to reach a final decision, the move by RHJ is aimed at trying to influence the American parent before that meeting.
Vauxhall employs 5,000 people at two plants in the UK. It has 2,200 workers at its Ellesmere Port factory, where the Astra model is made.
