GM prepares to dispose of stake in European unit for nothing - by John Reed and Daniel Schafer
General Motors is prepared to part with a controlling stake in Opel/Vauxhall for nothing but a pledge to invest directly in a new company formed from its European operations, according to two people familiar with its plans. GM, which might file for bankruptcy in the US and is running short of cash in Europe, was talking to more than six financial and industrial groups about acquiring a stake in its regional arm, Fritz Henderson, the carmaker's chief executive, said last week. It wants potential buyers to give a firm indication of their interest over the next two to three weeks. According to a person familiar with GM's thinking, an investor will be asked to pay at least €500m ($652m) in equity but the carmaker will realise no financial gain as the money will be injected directly into Opel/ Vauxhall.
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