Magna's bid for Opel preferred

BERLIN: Magna International Inc���s offer for General Motors Corp���s Opel unit is preferred by German regional governments over a bid from Fiat SpA, according to a state minister involved in the talks.

The bid from Canada���s largest auto-parts supplier ���is more reliable, innovative and sustainable��� than Fiat���s proposal, Hendrik Hering, economy minister of Rhineland-Palatinate, said in a phone interview from the state capital of Mainz.

The four German states where Opel employs 25,000 workers ���predominantly��� favor Magna���s concept, which shuns factory closures in Europe���s biggest economy, Hering said. Magna wants to turn Opel into an ���integrated automaker��� and supply it with components directly. ���The supplier angle is extremely attractive. That���s something that Fiat is lacking.���

Chancellor Angela Merkel���s government made ���significant progress��� yesterday in talks with state-owned banks including KfW Group toward securing bridge loans of at least 1 billion euros ($1.4 billion) for Opel, according to Juergen Reinholz, economy minister of the state of Thuringia. Bid outlines for Opel must be submitted to German federal authorities by 6 pm on Wednesday to qualify for government backing.

German Economy Minister Karl-Theodor zu Guttenberg, who���s overseeing government talks with bidders, said on April 28 that Magna���s plan is ���interesting��� as it would allow Opel to benefit from component transfers from Magna.