2nd UPDATE: European Opel Dealers Confirm Plan To Take Stake

European Opel dealer association Euroda said Friday it plans to take a stake of around 15% in General Motors Corp.'s (GM) core European brand after the planned spin-off from its troubled parent company, rubber-stamping a plan presented in March.

Euroda Chairman Jaap Timmer said during a telephone conference with reporters that the dealers would expect a representation on Opel's supervisory board if the plan goes through, adding that talks with the company over possible further steps will be held next week.

Timmer said the dealers will also hold talks with other potential investors, adding that they generally would be open for a deal with a financial investor as well.

At a gathering in Vienna, all European dealer representatives voted in favor of the plan apart from Finland, which abstained from the vote.

In March, Opel's dealers said they were willing to help bail out the troubled company by raising up to EUR500 million or more from a levy on car sales to fund the investment.

Under the proposal, dealers would contribute EUR150 to the fund from the sale of each vehicle for a period of three years. The Euroda association represents 4,000 dealers with about 120,000 employees.

Italian automaker Fiat SpA (F.MI) plans to integrate GM's European, Latin American and South African operations into a global alliance with its own auto unit and Chrysler LLC.

Austrian-Canadian auto parts supplier Magna International Inc. (MGA) has also signaled its interest in GM Europe, but hasn't provided further details on its plan so far.

Timmer declined to say whether he favors a deal with Fiat or Magna, but said he assumes that Magna may be more open to the idea of dealers taking a stake in the copany. He said the dealers have indications on the financial investors that are interested in Opel as well, but he declined to provide names.

Earlier Friday, the German government said talks with the U.S. over the future of Opel including a possible trusteeship will continue and will possibly be stepped up in coming days.

A government spokesman said Germany has told the U.S. side it is considering taking Opel into a state-supported trusteeship to keep it operating should GM enter bankruptcy before Opel can be sold.

German Economics Minister Karl-Theodor zu Guttenberg said earlier this week the government would consider the trusteeship step, which could include bridge financing, only if the two remaining bidders for Opel submit detailed feasible bids by May 20.

The trusteeship is aimed at allowing Opel to continue operations and to allow time to continue negotiations with possible investors while at the same time not putting the company or jobs at risks during this period.

Company Web site: www.opel.com

-By Christoph Rauwald and Andrea Thomas, Dow Jones Newswires; [phone]; [e-mail]