GM Nears Deal for Opel Unit

Magna, a Canadian auto-parts maker, is expected to reach an agreement with the German government.
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General Motors

(GM) - Get Report

has reportedly reached a tentative deal with Canadian auto-parts maker

Magna

to sell Opel, the automaker's German unit, ahead of its expected bankruptcy filing next week.

Both

Reuters

and the

Financial Times

said a tentative deal has been reached.

The Washington Post

reported that Russian state bank Sberbank Rossii and Russian automaker GAZ were involved with Magna in the deal.

Magna and GM Europe are expected to meet German Chancellor Angela Merkel today to hammer out the details of the agreement, the

FT

reported. The German government has sought to ensure the future of Opel, which employs 25,000 people in Germany, by enabling it to become an independent company that would be protected following the widely anticipated GM bankruptcy.

"There are new ideas from Magna -- they are still being negotiated with GM and, at the same time, being examined by us," Economy Minister Karl-Theodorzu Guttenberg told reporters outside the chancellery,

The Associated Press

reported.

Fiat

, the other suitor for Opel, has stayed out of the current talks, saying that it faced "unreasonable" funding demands, but CEO Sergio Marchionne stressed that Fiat was not withdrawing its bid,

AP

said.