Washington/Berlin, Aug 22 (DPA) General Motors' newly-appointed board has failed to support a plan backed by its executives that would sell the US auto giant's European subsidiary, Opel, to Canadian auto supplier Magna International Inc, according to reports Friday.
The meeting had adjourned with no decision, according to a GM statement. A GM spokesman confirmed to dpa that the board was not able to make a decision.
Board chair Edward Whitacre reportedly argued that a separate offer from Brussels-based RHJ International SA should be taken more seriously, sources told the Wall Street Journal.
Magna's bid for Opel is backed by the German government, which has offered financial backing to the tune of $6.4 billion. Germany Friday set out tough financial requirements for GM, according to a letter available with DPA, asking for help with dealing with Opel's possible deficit of $1.7 billion.
The GM board has not gotten a financing offer from the German government for the RHJ offer.