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Germany moves to secure money for Opel

Last-minute details are being worked out between local German governments and a Canadian auto parts giant in its effort to acquire GM's Germany-based Opel unit.
/ Source: The Associated Press

Last-minute details are being worked out between local German governments and a Canadian auto parts giant in its effort to acquire GM's Germany-based Opel unit.

The deal with Magna is being pushed through to protect Opel, which employs 25,000 people in Germany, from GM's expected bankruptcy filing tomorrow.

Today, two German states have approved their more than $800 million shares in a $2.1 billion bridge loan for the deal. Part of the loan will be available immediately. One of the governors of the states says "for Opel and its employees it is an unbelievable chance."

Under the deal, Magna will take a 20 percent stake in Opel and Russian-owned Sberbank will take a 35 percent stake, giving their consortium a majority. GM will retain a 35 percent holding and the remaining 10 percent goes to Opel employees.

As part of the deal, all four factories in Germany would stay open.