German Government: Not Closing Talks With Other Opel Bidders

The German economics ministry Thursday said it is not closing talks with alternate bidders to Magna International Inc. (MGA) for Adam Opel GmbH, the German unit of General Motors Corp. (GM).

An economics ministry state secretary, Jochen Homann, said that the government can't rule out the possible failure of Magna's offer. Magna has said it expects to sign off on the deal in four to five weeks and aims for Opel entry in September, after being selected by the German government as the frontrunner.

"There is always a risk that it won't be successful in the end," Homann said, repeating remarks by Economics Minister Karl-Theodor zu Guttenberg, who cautioned Wednesday that Magna's offer is non-binding.

Fiat SpA (F.MI) has presented a plan to acquire Opel, as has the U.S.-based investment group Ripplewood.

Homann also said that a Chinese bidder, Beijing Automotive Holding, has now presented a plan for Opel. A delegation from the company has told the German government it is interested in a second chance, should the deal with Magna fail.

-By Andreas Kissler, Dow Jones Newswires, +49 (0)30 - 2888 4118, [e-mail]