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Volkswagen AG (VOW.XE) said Wednesday Canadian auto parts supplier Magna International Inc. (MGA) will face conflicts of interest following the planned takeover of General Motors Corp.'s (GM) Adam Opel GmbH unit.

"Volkswagen will monitor this development very closely," spokesman Michael Brendel said.

Volkswagen, Europe's largest automaker by sales, is a direct rival of Opel.

"Tax money has been used to a large extent for Opel's rescue. We hope that through this a sustainable and successful result will be achieved effectively," Brendel said.

Magna wasn't available for comment.

Volkswagen, with its core VW, Audi, Skoda, Seat, Bugatti and Lamborghini brands is a major customer for Magna. Magna also supplies components to Porsche Automobil Holding SE (PAH3.XE), Volkswagen's largest shareholder.

Last week, the German government together with the German states where Opel plants are located decided to support Magna's bid for the Ruesselsheim-based automaker through bridge financing of EUR1.5 billion and keep it out of the bankruptcy filing of parent GM in the U.S.

Magna has teamed-up with Russia's OAO Sberbank (SBER.RS) and OAO GAZ Group (GAZA.RS) to take over Opel and boost its presence in Russia.

Magna Co-Chief Executive Siegfried Wolf said earlier Wednesday during a press briefing at Opel's headquarters he expects to sign off on a deal in four to five weeks, with the consortium's Opel entry to be completed by September.

Magna's consortium plans an initial investment around EUR700 million. In terms of the plan, GM would retain a 35% stake in the company. Sberbank would take a 35% stake as well, with Magna holding 20% and Opel's employees with 10%.

Magna chairman Frank Stronach had said Tuesday that he expects Opel to be profitable again in four years and plans to export cars to Canada from end-2009 onwards, AFP reported earlier Tuesday. However, there are currently no plans to export Opel cars to the U.S., he said.

Company Web site: www.volkswagen.com

-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512; christoph.rauwald@dowjones.com

(Nico Schmidt contributed to this article.)