In Michigan
10:13 pm
Fri May 29, 2009

GM, Magna, German government reportedly near Opel deal

DETROIT – DETROIT (AP) - A person briefed on the negotiations between General Motors Corp., the German government and Canadian auto parts maker Magna International Inc. says they have agreed on the framework of a deal for Magna to take a majority stake in GM's Opel unit.

The person said today that negotiators are working out the final details and an announcement could come within hours. It includes Magna providing short-term financing to become the preferred negotiating partner for Opel.

The German government would put up a 1.5 billion euro ($2.1 billion) bridge loan that would be repaid when the deal is closed.

The person did not want to be identified because the talks have not finished.