US investor pulls out of GM Europe talks

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} RHJ International, a private equity firm spun out of New York-based Ripplewood Holdings, and the only potential US investor, has withdrawn from the bidding process to buy General MotorsÔÇÖ European unit, leaving just ItalyÔÇÖs Fiat and Canada's Magna International in the frame.  RHJ had been seen as the outsider in the bidding contest, with German ministers describing its bid as failing to "gain much traction," but its withdrawal heralds the end of US involvement in GMÔÇÖs European operations.   There had also been a last-minute expression of interest from Beijing Automotive Industry Corp (BAIC), but German officials said that their focus was on Fiat and Magna.   Based in Aurora, Ontario, Magna International is one of the world's leading automotive suppliers, designing and developing components and systems, as well as building vehicles under contract for carmakers including Chrysler, Mercedes-Benz and BMW.  Magna has said it plans to cut around 9,000 job if it wins the auction. Unlike Fiat though, it has pledged to keep all four Opel plants in Germany open. In doing so it has succeeded in becoming a firm favorite of unions and politicians in Germany.   However, it has made no comment on the two Vauxhall factories in Britain and there have been reports that the Canadian firm would take a close look at the viability of the Luton plant.  Meanwhile, overnight talks in Berlin about the future of GM Europe broke down at dawn this morning without a decision being made on a preferred bidder for Opel and Vauxhall.   German officials are said to be furious, believing they have been taken for a ride by GM and the US treasury, with GM asking unexpectedly for another an extra $415 million in short term funding, when everything else was in place for decisions to be made.   General Motors has until 1 June to either restructure its debt or declare bankruptcy. If an agreement cannot be reached, then GM Europe will become embroiled in its parent companyÔÇÖs bankruptcy proceedings, which could happen before the 1 June US government deadline,   The decision as to the successful bidder for the European division is GMÔÇÖs to make, but the German governmentÔÇÖs offer of substantial financial assistance for the eventual winner makes it highly influential in the process.   With half of GM Europe's 50,000 workers based in Germany, the government is particularly concerned about potential job losses, especially as this is an election year.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *