taken from the Beeb
Magna 'agrees to buy GM Europe'
Canadian-Austrian car parts maker Magna International has reached an agreement in principle to rescue GM Europe, owner of Opel and Vauxhall, reports say.
The agreement was reached with General Motors, but will need to be approved by the German government, which will provide funding to the new owner.
The other potential bidder, Fiat, said it would not attend Friday's talks with the German government.
GM in the US is expected to declare Chapter 11 bankruptcy on Monday.
There is due to be a meeting in Berlin at 1800 local time (1600 GMT) attended by Chancellor Angela Merkel, the ministers involved and officials from the German states that contain GM plants to discuss whether to approve the deal.
Magna and GM will not attend the meeting at first, although they may be invited later.
There have been suggestions in the German media that it may be cheaper for the German government to allow GM Europe to declare itself insolvent than to allow it to be bought. On Thursday, the German government criticised the US Treasury and General Motors after being told at the last minute that GM Europe would need another 300m euros ($415m; £260m) in short-term funding.
It has already offered almost 1.4bn euros in loan guarantees.
Magna and GM will also have to make sure that GM Europe is restructured in a way that will protect the carmaker if, as expected, its parent company in the US declares itself bankrupt.
Magna has said it will inject between 500m and 700m euros into Opel, assuming the deal gains government approval.
It also plans to cut 2,500 jobs in Germany, about 10% of Opel's workforce in that country. Fiat had said it would cut 10,000 jobs.
It is not known what its plans for Vauxhall's plants in Luton and Ellesmere Port in the UK are.
Under the agreement with Magna, GM would keep a 35% stake in the company, while 10% would be owned by Opel employees.
Magna's bid is backed by Russia's state-run Sberbank and Oleg Deripaska's truck firm Gaz.
It hopes that GM Europe will gain 20% of the Russian market in the short term.
original article - http://news.bbc.co.uk/1/hi/business/8074218.stm