Fiat has lodged a bid to take over General Motors' European brands, Opel and Vauxhall, dpa cited the Italian company as announcing today after a demand by the German government for bidders to step forward. A Canadian auto parts company, Magna, was also expected to bid. German government sources said a deadline set for 6 pm Berlin time (1600 GMT) was extended by an unspecified period to accommodate the bidders. Fiat said in Turin that if its takeover offer were accepted, a new group would be formed, embracing Fiat, Opel, Vauxhall and Chrysler. Earlier the German state of Hesse, home to the main Opel factory, had pledged to guarantee a generous bridging loan. The Hesse finance ministry said it would post 447 million euros (608 million dollars) to back the ailing carmaker and top up a combined offer of 303 million euros from three other states with Opel factories. Germany has agreed to offer a 1.5-billion-euro bridging loan to keep Opel afloat until a new investor comes on board, leaving the federal government to top up states' contributions with a further 750 million euros. The regional pledges stood in direct proportion to the distribution of Opel employees in four states, North Rhine- Westphalia, Rhineland-Palatinate and Thuringia in addition to Hesse. In total, Opel employs about 25,000 people in Germany. German Labour Minister Olaf Scholz said Opel should be offered a future by the end of the month. Chancellor Angela Merkel held talks on Wednesday with the ministers involved in an Opel bailout. GM also needs to present the US government with a sustainable strategy for survival by May 29. The final decision on the future of GM's European subsidiary will be reached by GM and the US government, but Germany has a stake in the decision as any outcome is likely to rely on the German state guarantees. Once Berlin receives all bids these are to be rigorously examined, in parallel to deliberations in Washington and Detroit, before any decision is made public.
