GM Generali

Generali (AQEU:GM)
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German State Secretary Jochen Homann said Wednesday that he doesn't expect Magna International Inc. (MGA) to clinch a deal next week to take over General Motors Corp.'s (GMGMQ) German unit Adam Opel GmbH.

"An agreement between Magna and GM on a business plan" might be reached next week at most, Homann told Dow Jones Newswires in an interview, adding that this wouldn't mean that the deal is finalized.

He said some open questions will persist, such as details on financing and further examinations through the U.S. and European governments.

In May, GM signed a memorandum of understanding to sell a majority stake in Opel and its U.K. sister brand Vauxhall to Magna, whose bid is backed by Russia's Sberbank Rossia (SBER.RS) and automaker OAO GAZ Group.

The tentative agreement with Magna is backed by EUR1.5 billion in bridge financing provided by the German government to keep Opel afloat as parent GM filed for bankruptcy protection in the U.S.

Company Web site: www.opel.de

-By Beate Preuschoff, Dow Jones Newswires; +49 (0)30 - 2888 4122, beate.preuschoff@dowjones.com