Future of GM's Opel Unit Still Undecided

By Melissa Eddy

BERLIN -- All-night talks hosted by German Chancellor Angela Merkel on the future of the Opel unit of General Motors (GM Quote) ended without decisions as new details emerged of its financial needs, the German economy minister said Thursday.

German officials had hoped to set up an arrangement under which the government could provide bridge financing for Opel while talks continue with potential investors.

However, Economy Minister Karl-Theodor zu Guttenberg said they didn't succeed in doing that. During what he described as a "remarkable night," officials said GM reported extra financing needs totaling 300 million euros ($418 million) in short-term cash for Opel.

There also was no decision on who might take over Opel from GM, which appeared likely to file for bankruptcy protection after bondholders balked at its plan to swap bond debt for company stock on Wednesday.

Steinbrueck said that two investors -- Italy's Fiat and Canadian auto parts maker Magna International(MGA Quote), which submitted a bid along with Russian lender Sberbank -- remain in the running. U.S. financial investor Ripplewood Holdings has bowed out.

The government, however, needs further information from GM and the U.S. Treasury Department before decisions can be made, Guttenberg said. That information is expected by Friday, he added.

At the same time, Finance Minister Peer Steinbrueck said that Fiat and Magna "have been asked by GM and the US Treasury to do their homework" on how they would handle the additional short-term cash needs and rework their concepts. The results of that also are expected on Friday, he said.