Ripplewood, the private equity group, is understood to be ready to return with a bid for General Motors Europe should the carmaker’s Canadian suitor fail to complete its acquisition.
About 5,500 British jobs hang in the balance at Vauxhall as Magna International, the Canadian car parts supplier, trawls through the accounts of the Luton-based carmaker.
Magna’s offer to buy a controlling stake in GM Europe – which owns Opel in Germany and Vauxhall in the UK – is conditional on the completion of due diligence. Magna is also eager to grab state aid from Business Secretary Lord Mandelson in return for guarantees about the future of the Vauxhall workforce.
While representatives from Lord Mandelson’s Department for Business, Innovation and Skills are due to meet Magna officials in London this week, there remain doubts over whether Magna will complete the deal.
Ripplewood was one of four interested parties considering a bid for GM Europe in May, but it was forced to withdraw from the bidding after Magna was picked at the end of last month as the preferred bidder.
Source: The Times