RHJ continues Opel chase, ups offer price

BERLIN: Belgian holding company RHJ International is readying an improved offer for General Motors unit Opel which foresees preserving all of its German plants, a newspaper reported on Sunday.

Without citing its sources, Germany���s Bild am Sonntag said RHJ would require e3.8 billion ($5.3 billion) in government guarantees under its new plan and would cut just under 10,000 Opel jobs across Europe.

An RHJ spokesman was not immediately available to comment on the report. The company has yet to confirm or deny ever having bid for Opel.

Canadian auto parts supplier Magna International is leading contender for Opel after signing a preliminary memorandum of understanding with GM in May.

But the German government, which agreed to supply e1.5 billion in bridge financing to Opel while a deal was finalised, has said the race remains wide open. It has encouraged rival bidders, such as RHJ, China���s Beijing Automotive (BAIC) and Italy���s Fiat, to come back with improved offers, raising the pressure on Magna.

Reuters obtained a non-binding offer document from BAIC last week in which the group lays out a plan to use Opel���s brand and technology to tap the huge Chinese market.

Despite noise from rivals, Magna has pressed ahead with talks on securing a framework deal with GM, which itself emerged from bankruptcy on Friday.

The head of Magna���s European business told a German newspaper last week his company was on track to reach an agreement with GM and was targeting July 15 as a date for a preliminary deal.

But industry sources have told Reuters that Magna could delay a board meeting to approve the Opel deal which was originally set for July 14, suggesting a preliminary deal could be delayed beyond next week.