GM Generali

Generali (AQEU:GM)
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The president of General Motors Corp.'s (GMGMQ) European unit said Friday he expects a definitive agreement for an acquisition of the business by Magna International Inc. (MGA) to be reached by July, with the closing of the deal to be completed by September.

"But as our partners at Magna have stated as well, while we're all fully committed to getting this deal done, much work remains and much could happen along the way," Carl-Peter Forster wrote in his corporate blog.

Last week, the German government agreed to provide EUR1.5 billion in bridge financing to keep GM's Adam Opel GmbH unit afloat and enable it to forge a deal with Magna, despite the bankruptcy filing of parent GM in the U.S.

The agreement to establish a trusteeship for Opel was reached after two late-night negotiating sessions between company executives, the German government, German state governors and the U.S. Treasury.

"The trust agreement we established is a German KG company in charge of holding 65% of the shares in Adam Opel in accordance with the rules of a trust deed agreed between GM and the German government," Forster said, adding that the trust company is controlled by advisers instructed by GM and the German government. It won't, however, be in control of Opel's daily operations, which "will continue as usual."

Company Web site: www.opel.com

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