Tuesday, June 30, 2009

Magna Troubles With Opel

Magna International (MGA) seems to be running into problems with the Opel acquisition. GM (GMGMQ), now that it is feeling better, does not want to give away anymore than it needs to. They do not want to give away any more technology which is still controlled in Detroit. They want the ability to buy back in and essentially take out Magna and Sherbank. This allows the temporary optics of a sale. Essentially GM just wants to rent the asset out and pull it back in at a time of their choosing. Sp one has to wonder just what Frank Stronach is bringing to the table.