GM Moving Closer to Opel Decision

General Motors is reportedly closer to picking Germany's Magna International over Brussels-based RHJ International as the winning bidder for its Opel division.
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DETROIT (

TheStreet

) --

General Motors

is reportedly closer to picking Germany's

Magna International

(MGA) - Get Report

over Brussels-based

RHJ International

as the winning bidder for its Opel division.

Reuters

Friday reported that the U.S. automaker will end months of talks over the sale of Opel, with a source saying GM is "going in the direction of Magna."

In a separate story,

Bloomberg

reported that the GM's directors will meet by conference call Friday to discuss bids for its Opel division, citing two people familiar with the planning.

Magna's bid has reportedly been favored because of state aid pledged by Germany. Magna's plan to buy Opel has been supported by loan guarantees totaling 4.5 billion euros ($6.25 billion). Germany threatened to withdraw its offer if the European car business was sold to anyone other than Magna.

Magna and its Russian partner Sberbank signed a nonbinding agreement in May that envisages Sberbank taking a 35% stake and Magna a 20% stake in GM's European subsidiary.

The deal could be sealed next week after final talks with the German government,

Reuters

added.