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EUobserver / Surprise cash demand stalls Opel talks

An unforeseen request by General Motors for an additional €300 million to help its European subsidiary Opel, caused talks with the German government and potential buyout companies Fiat and Magna to stall in the early hours of Thursday morning (28 May).

"We had a nasty surprise when this demand turned up literally at 8 pm [an hour before the talks started]," said German Finance Minister Peer Steinbrueck, reports Bloomberg. "We did consider this a bit of an outrage."

EU economy ministers are to meet soon to discuss the future of Opel

The German government now hopes to secure a deal by Friday, economy minister Karl-Theodor zu Guttenberg told journalists in Berlin.

Detroit-based General Motors - likely to file for Chapter 11 bankruptcy in the US if it does not meet a US administration-imposed restructuring deadline of 1 June - said the additional cash was needed in order to keep Opel operating.

by Fran on Thu May 28th, 2009 at 12:01:57 PM EST
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