General Motors' top negotiator for the sale of its European business took issue on Friday with assertions that Opel suitor Magna had struck a deal in principle on a contract for the deal. “Yesterday was a pretty busy day in the media, with many outlets reporting that Magna/Sberbank and General Motors had reached an agreement regarding Opel. At the risk of repeating myself, that's just not the case,” John Smith posted on a blog. He was responding to comments from Magna co-CEO Siegfried Wolf, who told Reuters Thursday that the Canadian automotive group and its Russian partner Sberbank had reached agreement in principle with GM management over a contract to buy 55 percent of Opel. Smith said GM would compare the latest offer it got from Magna on Thursday with the “attractive” proposal it got from Belgium-based financial investor RHJ on July 20. It was also awaiting input about what state aid it could expect from European countries that host Opel plants before presenting its findings to GM's board of directors, he added. “After the GM board makes its recommendation, the Opel Trust Board will be asked for its approval. So, there is more to consider, and more to do, before an agreement for Opel is reached,” he added.
