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Fiat's chief meets Merkel, argues for Opel takeover (Roundup)
May 26, 2009, 14:28 GMT
Berlin - Sergio Marchionne, chief executive of Fiat, met Tuesday with German Chancellor Angela Merkel to advocate his Italian company taking charge of General Motors' European carmaking unit.
But German Economics Minister Karl-Theodor zu Guttenberg, who had earlier described Fiat's bid as 'inadequate' and attended the meeting, later told political supporters the Fiat proposals were 'not bad,' but 'more improvements are still needed.'
Guttenberg told Merkel's Christian Democrats he found none of three bids for General Motors Europe (GME) persuasive, though he called Fiat's offer solid.
He said a rival bid from Canada-based auto components company Magna also needed improvement. Guttenberg said putting the German company, which makes Opel cars, into insolvency remained an option.
Berlin aimed to map out what to do before the US parent, General Motors (GM), filed for insolvency, he said.
A plan would be adopted at meetings in Berlin Wednesday between political leaders, GM, GME and bidders, but GM and Washington would have the final say. The third bidder is Ripplewood, a US private- equity investor. General Motors employs 25,000 people in Germany.
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