GM, Magna reach tentative deal on Opel, sources say

Posted on Friday, May 29th, 2009 at 1:27 PM EDT.

General Motors Corp. and Canadian auto parts group Magna International Inc. have reached an agreement in principle that could rescue ailing German carmaker Opel, sources close to the negotiations told Reuters today.

The two sides have been trying to agree on a memorandum of understanding that would serve as the basis for bridge financing of 1.5 billion euros ($2.1 billion) as well as a trustee solution that would protect Opel from creditors in case parent GM files for Chapter 11 in U.S. bankruptcy court, Reuters said.

“A framework agreement has been reached. The goal is to work out as many of the details as possible before the meeting with (Chancellor Angela) Merkel in order to sign a memorandum of understanding today,” one source with knowledge of the talks told the news service. (Reuters/Automotive News)

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