German state leader: Magna seeks Opel majority stake

BERLIN (Reuters) -- Austrian-Canadian supplier Magna International is seeking to obtain majority control of General Motors' Opel unit through direct and indirect stakes, a regional state leader said on Tuesday.

Kurt Beck, state premier of Rhineland-Palatinate, which is one of four German states where Opel plants are located, told journalists that Magna wants to acquire a stake of about 20 percent in Opel directly.

Beck's spokesman said other investment possibilities through subsidiaries were also being considered. He said Magna wants to get a majority.

Canada's Globe and Mail reported on Monday that Magna and Russian oligarch Oleg Deripaska are considering taking a 50 percent share in Opel. Magna would purchase about 20 per cent of Opel and Deripaska would possibly combine with Russian banks to pick up another 30 per cent, the newspaper said.

A spokesman for Magna had no comment on Beck's remarks.

Magna and Fiat S.p.a. are emerging as rival bidders for Opel.

German politicians and Opel's union bosses say Fiat wants a controlling stake in Opel.

German Economy Minister Karl-Theodor zu Guttenberg met senior representatives of Magna on Tuesday to discuss its possible investment in Opel.

After the meeting, Guttenberg said Magna and Fiat have presented rough plans to invest in Opel.

The concepts from Magna and Fiat are very different from each other, Guttenberg said, adding these two were the most substantial plans he had seen so far from potential investors.

He declined to give more details.

GM must sell a significant stake in Opel to convince German politicians to use taxpayers' money to provide the cash-strapped carmaker with 2.6 billion euros ($3.4 billion) in loan guarantees.

With an election due in September, the German government is anxious to find a way of saving jobs at the company. Opel has four production sites in Germany, which together employ some 25,000 people.

"The future security of the plants plays a major role in both initial plans," Guttenberg said.

Cash-strapped GM is carving out German-based Opel and its British sister brand Vauxhall into a separate unit and is seeking outside equity investors to give Opel a major cash infusion.