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11/20/2008 06:59 AM
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SolarWorld Bids to Take Opel from GM
SustainableBusiness.com News
In a bold move, one of Germany's solar power groups has announced a EUR $1 billion ($1.26 billion) takeover bid for General Motors' (NYSE: GM) German car division, Opel.
Solarworld AG (SWV.DE) said it will submit an offer to the struggling U.S. automaker to take over the four German factories and the Rüsselsheim development center of Adam Opel GmbH.
SolarWorld said it would offer EUR 250 million and bank credit lines worth ERU 750 million, if the German government provides a guarantee. Another stipulation of the offer is that General Motors would pay each Opel employee a compensation payment of EUR 40,000 --an amount roughly equivalent to the billion-dollar purchase price.
This demand has led some analysts to call the offer an unrealistic marketing ploy. GM and Opel have yet to make a comment.
The SolarWorld Group said in a statement that it would "develop Opel into the first 'green' European automotive group."
Opel currently employs 26,000 people in Germany, while solar world is a much smaller company, with a staff of 2,500 and sales of EUR 689 million in 2007.
"Sustainability is a comprehensive concept. The challenges of climate protection and of the market can only be met if we move on from automotive to solar-motive concepts", says SolarWorld Chairman and CEO Frank H. Asbeck.
Website: http://www.solarworld.de
