Business News
Beijing Auto Industry Holding Co. expresses interest in Opel sale
May 23, 2009, 7:40 GMT
Beijing - China's Beijing Automotive Industry Holding Co. (BAIC) has expressed interest in securing a stake in General Motors Corp's up-for-sale European Opel and Vauxhall operations, according to a news report.
The leading Chinese car maker sent a letter of interest Thursday, a day after bidding for stakes in GM's European operations closed. Sources cited in the Saturday Financial Times said that any deal with BAIC is unlikely to move forward.
Facing bankruptcy, GM is selling a stake in Opel and Vauxhall, reportedly asking 650 million Euros (900 million dollars). Italian car maker Fiat SpA, Canada's Magna International Inc and buyout firm RHJ International SA placed bids on Wednesday, the report said.
Analysts in China have questioned whether BAIC will be able to make a serious bid.
'No Chinese car company can afford to pay that much money,' said Li Chunbo of Citic Securities in Beijing, quoted in the Financial Times.
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