Magna Changes Final Offer For Opel

Magna has changed its final offer for General Motors Co.'s German unit Adam Opel GmbH and is now willing to provide more capital initially than previously planned, a government official who declined to be named told Dow Jones Newswires Tuesday.
Magna and its Russian partners still intend to invest a total of EUR500 million of their own money in Opel, but are now willing to provide EUR350 million when signing the deal and then EUR150 million in convertible bonds.
Magna was not immediately available for comment. A spokesman for GM Europe declined to comment.
Previously, Magna and its partners had offered EUR100 million to be paid on signing the deal and EUR400 million in loans, which would gradually be transformed into equity capital.
"Magna is now willing to enter risks earlier than previously planned," said the official.
U.S. automaker GM is still in talks with Magna and Belgian investment group RHJ International SA (RHJI.BT) over a takeover of Opel/Vauxhall. Final bids were submitted to the carmaker July 20. Magna and RHJ remain in the bidding races while Beijing Automotive Industry Holding Co. Ltd. recently dropped out.
The German federal and state governments have a say in Opel because all bidders have requested state aid for the carmaker. The federal government has repeatedly called on the bidders to provide more of their own capital.
The German federal government, as well as those German states with Opel production sites, wants Magna to win the bid because they expect the car supplier to have a long-term interest in Opel while GM seems to favor RHJ.