BERLIN (Reuters) - The federal government in Berlin and the states where Opel has plants are only prepared to offer financing aid if Canada's Magna wins the battle for the carmaker, a senior ally of German Chancellor Angela Merkel said.
Magna, a Canadian auto parts maker, is competing with RHJ International
"The states with Opel plants and the federal government are in agreement: we will support a decision with guarantees only if GM opts for Magna," Dieter Althaus, premier of the eastern state of Thuringia, where Opel has a plant, told the Handelsblatt newspaper.
Merkel reiterated on Thursday that Germany preferred Magna's bid over that of RHJ, but acknowledged that GM could have a different view on the matter.
RHJ's competing bid would shrink the German automaker, while Magna plans to expand its reach to return to profitability. Magna's co-CEO Siegfried Wolf told Reuters on Thursday that his company and its Russian partner Sberbank
(Reporting by Brian Rohan; Editing by Hans Peters)
